Italy’s CDP opposes major management changes in TIM boardroom row – sources

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MILAN, Nov 9 (Businesshala) – Telecom Italia (TIM) second-largest investor CDP does not want major management changes in the former phone monopoly as its top shareholders question the role of Vivendi (VIV.PA) CEO Luigi Gubitosi, from the case. Three sources said.

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Members of the TIM (TLIT.MI) board will face off this Thursday over plans outlined by Gubitosi to reorganize the group and extract more value from its assets, including major landline grids.

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The extraordinary board meeting has been requested by Vivendi’s representatives on TIM’s board of directors, Arnaud de Puyfontaine and Frank Cadoret, with three independent members.

Casa Depositi e Prestiti (CDP) wants this week’s board meeting to discuss strategies to improve TIM rather than governance issues, which it may discuss at a later stage, a source said.

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TIM and CDP declined to comment.

Vivendi, which holds a 24% stake in TIM, has expressed disappointment over TIM’s performance after two profit warnings in three months.

Sources have said that while seeking a turnaround in Italy’s biggest telecom company, the French conglomerate wanted to strike a deal with the Italian government.

The Treasury-controlled CDP owns a 9.8% stake in TIM and holds one of the fifteen board seats.

Vivendi, which backed Gubitosi’s second term as CEO with the CDP in March, does not control the company’s board, which has a majority of independent members.

Gubitosi’s reappointment was originally part of a broader plan backed by the previous government to merge TIM’s entire Access network assets with state-backed rival OpenFiber.

However, key figures in the current ruling coalition led by Prime Minister Mario Draghi, including Innovation Minister Vittorio Colao, have poured cold water on the plan, which envisages TIM to own more than 50% of the new entity. .

Reporting by Elvira Polina and Francesca Landini in Milan, Editing by Giuseppe Fonte Marc Potter in Rome

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