Telecom Italia has confirmed earlier media reports, announcing that Luca Luciani has resigned from his position as CEO of TIM Participacoes as of 5 May 2012.
Telecom Italia’s CFO Andrea Mangoni will take over on an interim basis until a replacement…
Telecom Italia has confirmed earlier media reports, announcing that Luca Luciani has resigned from his position as CEO of TIM Participacoes as of 5 May 2012.
Telecom Italia’s CFO Andrea Mangoni will take over on an interim basis until a replacement can be appointed.
Telecom Italia did not give a reason for Luciani’s exit, although reports have linked the departure to an investigation by the Milan Public Prosecutor into “obstruction of supervisory activity” by three TI executives, which the company announced at the beginning of May in an SEC filing.
Luciani is one of the executives being scrutinised by the investigation which relates to the alleged unlawful renewal of mobile phone SIM cards in Italy between 2006 and 2008 to manipulate market share data.
Bernstein research commented in a note that they expect the share price to drift in the short term until a successor can be appointed, but were confident of TIM Participacoes position in the market going forward. They emphasised the need for an appointment to be made swiftly due to the upcoming auction of Brazilian spectrum.
Bernstein also noted that they thought it unlikely that the controversy Luciani was embroiled in would extend to accounting repercussions for TIM Participacoes, due to different regulatory conditions in Brazil to Italy.
