Home ›› 28 Nov 2021 ›› Biztech
Telecom Italia (TIM) lost its fourth chief executive in six years on Friday after Luigi Gubitosi threw in the towel, following a clash with top investor Vivendi , a week after a $12 billion takeover proposal by US fund KKR .
The former phone monopolist said in a statement the head of TIM Brazil, Pietro Labriola, had been named general manager so as to ensure the group continued to operate smoothly, confirming what sources had told Reuters earlier on Friday.
Chairman Salvatore Rossi, a former central bank official, took on Gubitosi's remaining powers, including the oversight of TIM's assets which matter for Italy's national security.
The CEO had offered to relinquish its responsibilities on Thursday, saying in a letter he did not want to stand in the way of the board giving prompt consideration to KKR's approach.
TIM said it had set up a special committee headed by Rossi to study the offer with the help of advisers it was preparing to appoint.
TIM's nominations committee will work with headhunters Spencer Stuart to ensure a stable leadership for the group over the medium term, taking into account the evolution of TIM's structure and assets, it said.
Sources had said the board would also discuss the threat to earnings from a soccer rights deal that has failed to help revenue and has contributed to two profit warnings.
TIM's disappointing results have strengthened Vivendi's hand in pushing out Gubitosi who had been brought in by rival TIM investor Elliott in 2018.
Gubitosi remained on as a director, preventing Labriola from joining the board and being named as CEO on Friday, a role which sources said he may take on at a later stage.
