Telecom Italia (TI) plans to form an internal work group to review company bylaws on corporate governance.
The work group will present the results of its analysis at a board meeting on 6 February, the Italian incumbent said in a statement released after…
Telecom Italia (TI) plans to form an internal work group to review company bylaws on corporate governance.
The work group will present the results of its analysis at a board meeting on 6 February, the Italian incumbent said in a statement released after its board meeting yesterday (16 January).
The board also decided during the meeting not to replace the two Telefonica directors among its membership who stepped down in December given their terms were to end shortly. Telefonica CEO Cesar Alierta and former COO Julio Linares quit their posts to avoid perceived conflicts of interest in Brazil, where the Italian and Spanish incumbents compete.
Marco Fossati’s Findim Group, TI’s third largest shareholder with about a 5% stake, had asked the board to introduce a proportional shareholder system which would give minority shareholders greater board representation.
Telco, the holding company via which Telefonica owns its stake in TI, is currently entitled to appoint the majority of board members. Findim and small shareholders association Asati made an unsuccessful attempt to replace the TI board in December.
TI CEO Marco Patuano favours increasing minority shareholders’ board representation, Bloomberg has cited sources with knowledge of the matter as saying.
TIM Brasil
In its statement yesterday, TI also said directors have proceeded with an in-depth analysis of its Brazilian unit TIM Brasil with the support of its CEO Rodrigo Abreu. The board decided at the meeting, which TI described as “very fruitful”, “to define an ad hoc procedure … to manage any possible extraordinary operation involving Telecom Italia holdings in the companies of the TIM Brasil group”. Such a procedure would follow “related party procedures”, which require an evaluation from independent directors.
Plans for TIM Brasil will also be on the agenda of the 6 February board meeting. TI noted that it has not received an offer for its 67% stake in the company and is not in talks on the matter.
