Rossi resigns as Telecom Italia chairman

Telecom Italia (TI) chairman Guido Rossi has resigned following a decision by the telco’s largest shareholder, Olimpia, not to back his re-election to the board. Rossi initially hinted that he would attempt to go against Olimpia and still run for the new board, but a TI statement last Friday said he had stepped down with immediate effect. Dow Jones reports that without Olimpia’s support it would have been virtually impossible for Rossi to have retained his status on the board; under TI statutes, the majority shareholder – Olimpia – nominates four-fifths of the board, while minority shareholders nominate the remaining fifth. Olimpia, a holding company owned by Pirelli and members of the Benetton family, controls 18% of Telecom Italia. Pirelli is currently in negotiations with AT&T and América Móvil to sell off two-thirds of its stake.