ISS Says Telecom Italia Investors Should Back Elliott
April 09 2018 - 10:01AM
Dow Jones News
By Marc Navarro Gonzalez
Institutional Shareholder Services said Monday that Telecom
Italia SpA's (TIT.MI) investors should support Elliott Management
Corp's list of nominees for the Italian operator's board, as
Vivendi SA (VIV.FR) "appears to be more of a liability than an
asset".
ISS, a proxy advisory company, said shareholders should back
activist fund Elliott's proposal of replacing six Vivendi
representatives on the Italian operator's board. Vivendi is Telecom
Italia's biggest shareholder.
The vote on Elliott's proposal is expected to take place at
Telecom Italia's next shareholder meeting, which is on April
24.
Telecom Italia has called another shareholders meeting for May 4
to appoint a new board. Still, Elliott has said that if
shareholders support its proposal, the May 4 vote won't be
necessary.
ISS said the Italian operator has "its fair share of management
and board turnover over the last few years" and that Vivendi's
influence hasn't brought stability.
Among other reasons to back Elliott in the vote, ISS cites the
"declining relationship with the Italian government and the
ever-present conflict of interest."
ISS said that having a media company as de facto controlling
shareholder has restricted Telecom Italia's strategic
alternatives.
Eight Telecom Italia board members affiliated with Vivendi
announced their resignations in March, which forced a board
reshuffle.
Read more about the Telecom Italia tug-of-war on:
https://on.wsj.com/2GKAIUX
Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com
(END) Dow Jones Newswires
April 09, 2018 09:46 ET (13:46 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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