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.
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.