ISS Says Telecom Italia Investors Should Back Elliott

   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)

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