A report from Italian newspaper La Repubblica claims that activist investment fund Elliott Advisors has increased its stake in Telecom Italia (TIM) from 5.7% to around 9.9% as it manoeuvres to increase its influence at the telco at the expense of French majority shareholder Vivendi. Elliott has called for six TIM board members to be replaced, prompting the mass resignation of over half the board and thereby triggering a vote next month to elect new personnel. Both Vivendi and Elliott have put forward lists of candidates for the vote.
For its part, Vivendi appears confident that it can see off the challenge from Elliott, with TIM’s CEO – and Vivendi nominee – Amos Genish telling La Stampa: ‘We’ve got a good strategic plan and investors know this. I’ve met 120 in the last few weeks, and they ask for management continuity.’