Former Italian CEO Telecom has left the company board by Reuters

Author: Elvira Pollina

MILAN (Reuters) – Telecom Italia (TIM) said on Friday that former CEO Luigi Gubitosi had left the company’s management, removing the hurdle that prevented Italy’s largest telephone group from naming his successor.

The meeting room crisis has hampered the group’s response to a $ 37 billion takeover approach by the U.S. private equity fund KKR, which is awaiting access to TIM data before making a formal offer.

TIM said it was conducting a “thorough assessment” of the offer, but also a “review of other strategic alternatives … such as deciding whether or not to grant access to the diligence required by the KKR.”

TIM also said it has continued its search for a new CEO, but did not say when it could appoint a new leader.

KKR’s offer is subject to the backing of the company’s board and the Italian government, but TIM’s largest shareholder Vivendi (OTC 🙂 has said it does not reflect TIM’s value.

The French media group is considering an alternative plan, sources said earlier.

Both strategies envisage separating TIM’s services from its infrastructure assets, and call for renewed investment in the country’s multi-billion dollar digital push.

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The deal with TIM provides Gubitos with about $ 6.9 million ($ 7.8 million) in compensation to be paid by Jan. 3, the company said in a statement.

Gubitosi resigned last month after being pressured by Vivendi and losing the trust of a majority of board members after a series of earnings warnings.

But Gubitosi did not step down as director of the board, and TIM prevented him from appointing a new director while waiting for a vacant seat on the board.

Last month, TIM named Pietro Labriola https://www.reuters.com/markets/deals/kkr-offer-prompts-telecom-italia-board-showdown-over-ceos-future-2021-11-26 . his esteemed Brazilian business, CEOs and sources said he would be appointed CEO when a seat on the board becomes available.

But sources familiar with the process said there were differing views on the board as to who would be the best candidate to ensure long-term stable leadership.

TIM has hired Spencer Stuart as head hunter, which has compiled a list of possible CEO candidates.

“The Board … continues the process of planning for the succession to the appointment of the new CEO, and will complete it as soon as circumstances allow,” TIM said.

($ 1 = $ 0.8898)

(Edited by Valentin Za, Sneha Bhowmik Bengaluru, Agnieszka Flak Milan by Elaine Hardcastle, Rosalba O’Brien and Mark Potter)