Correct: Telecom Italia Board Considers Elliott's Proposed Agenda Changes Unlawful
April 10 2018 - 4:21AM
Dow Jones News
"Telecom Italia Board Considers Elliott's Proposed Agenda
Changes Unlawful," at 0533 GMT, misstated the board's action in the
second paragraph. The board disagreed with the auditors' decision
but didn't overturn it. The article also misrepresented the board's
decision in the first paragraph. The board disapproves of adding
Elliott's proposals to its April 24 agenda and plans legal action
to exclude them, but didn't outright strike them. Finally, the
article misrepresented the timeline in the fourth paragraph. Eight
Telecom Italia board members resigned after Elliott had made a
request to replace six of them. The correct version follows:
By Alberto Delclaux
Telecom Italia SpA's (TIT.MI) board of directors said on Monday
that it considers adding a request by Elliott Management Corp. to
nominate six board members to its April 24 annual general meeting
unlawful and may pursue legal action to strike it from the
agenda.
After a meeting on Monday, Telecom Italia's board--with five
contrary votes--said it dissociated itself from a decision made by
the board of statutory auditors to include Elliott's proposal in
the agenda, adding that it would send documents to Italian
regulator Consob for consideration of the matter.
The tussle between shareholders Vivendi SA (VIV.FR) and activist
investor Elliott resulted in the resignation announcements of eight
Vivendi-affiliated board members in late March, forcing a complete
reshuffle of the board.
Telecom Italia called a shareholders' meeting for May 4 to vote
on a new board, but then the auditors decided to supplement the
agenda with a previous request from Elliott to nominate six board
members at the AGM. Elliott said that if shareholders supported its
proposal, the May 4 meeting needn't take place.
Vivendi holds a 24% stake in the telecom. Elliott on Monday said
it raised its stake to 8.8%.
Late Monday, Telecom Italia confirmed the call of notice to a
separate shareholders' meeting on May 4, to proceed with the full
renewal of the board.
Read more about the Telecom Italia tug-of-war on:
https://on.wsj.com/2GKAIUX
Write to Alberto Delclaux at alberto.delclaux@dowjones.com
(END) Dow Jones Newswires
April 10, 2018 04:06 ET (08:06 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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