U.S.-based Elliott has succeeded in appointing 10 independent directors to the board of Telecom Italia — beating Vivendi — securing two thirds of the available seats after a shareholder vote.
Five of Vivendi’s candidates, including Telecom Italia CEO Amos Genish and Vivendi CEO Arnaud de Puyfontaine, will remain on the board.
There is no clarity about the presence of Amos Genish, a Vivendi ally but well respected by Elliott, Italy’s government and other investors, in the new board. Telecom Italia is expected to meet on Monday to appoint a CEO and chairman.
Elliott earlier accused Vivendi, a media group from France, of serving only its own interests. French media group said Elliott was looking only for short-term financial gains.
“Today’s landmark vote represents a victory for all shareholders and opens a new chapter for TIM, in which the company can build upon a foundation of improved governance to secure sustained value creation for all stakeholders,” Elliott said in a note.
Elliott launched its campaign to loosen Vivendi’s grip over TIM in March. It built a stake of 9 percent in Italy’s biggest phone group to try to shake up the way Vivendi – which owns 24 percent – runs it.
“We will be very vigilant to ensure that the independent directors elected with Elliott’s slate don’t push for the break-up of TIM,” a Vivendi spokesman said.
Since becoming a shareholder in 2015, Vivendi appointed the majority of its board last year and its own CEO as TIM’s executive chairman – all in the name of French tycoon Vincent Bollore’s stated ambition to build a southern European media powerhouse.
Two CEOs left because of clashes with the French investor.
Vivendi said the result was not a “market driven victory” saying it was the participation of Italian state lender CDP that tilted the vote in Elliott’s favor. CDP bought 4.8 percent of TIM, a move widely seen as political endorsement of the Elliott campaign.
