Telecom Italia CEO is Ousted as Elliott Lands Another Blow in Vivendi Tussle -- Update
13 Novembre 2018 - 11:57AM
Dow Jones News
(Adds detail, quotes.)
By Donato Paolo Mancini
Telecom Italia's (TIT.MI) board has ousted Chief Executive Amos
Genish with immediate effect, the company said Tuesday, the
culmination of a monthslong tussle between its two main
shareholders, Vivendi SA (VIV.FR) and Elliott Management Corp.
Mr. Genish was the second chief executive to guide the company
in little more than a year. Last summer, Flavio Cattaneo resigned
after relations with Vivendi soured, having held the top position
for about a year.
The president of the board, Fulvio Conti, will take over in the
interim and a board meeting has been called for Sunday to choose a
new CEO, Telecom Italia said.
Vivendi and Elliott have been at odds for months regarding
Telecom Italia, with Elliott pushing for strategic changes at the
company. In spring, Elliott took control of the board. Mr. Genish,
who was appointed by Vivendi, appeared until recently to have
Elliott's support.
"Mr. Genish was supposed to be OK both for Vivendi and Elliott,"
Alexandre Iatrides of financial-services group ODDO BHF said. "I
think we're watching another event of war between the two and, in
that sense, Mr. Genish is the fuse [for this event]."
Telecom Italia's woes have been more operational and structural
rather management-related, Mr. Iatrides said. Elliott had been
pushing for a network split, and Vivendi wasn't against it, he
said. But the plan suffered many setbacks and has been canceled and
restarted several times, also owing to Telecom Italia's high debt
load.
A now-removed biography page on Telecom Italia's website said
Mr. Genish, who was appointed to the chief executive role last
September, was born in Israel and holds a degree in accounting and
economics. He held an executive position at Vivendi in the first
half of 2017, according to an archived copy of the page seen by Dow
Jones Newswires.
Activist fund Elliott has been waging corporate battles around
the world which have affected companies spanning sectors from
manufacturing to asset management.
Write to Donato Paolo Mancini at
donatopaolo.mancini@dowjones.com; @donatopmancini
(END) Dow Jones Newswires
November 13, 2018 05:42 ET (10:42 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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