Telecom Italia Board Considers Elliott's Proposed Agenda Changes Unlawful

   By Alberto Delclaux

Telecom Italia SpA's (TIT.MI) board of directors has rejected a request made by activist investor Elliott Management Corp. to nominate six board members at its April 24 annual general meeting.

After a meeting on Monday night, Telecom Italia's board--with five contrary votes--said it considers the proposed change to the AGM's agenda unlawful, overturning a decision made by the board of statutory auditors. The board added that it is prepared to take legal action to protect the company.

The ongoing tussle between shareholders Vivendi SA (VIV.FR) and Elliott resulted in the resignation of eight Vivendi-affiliated board members in late March, forcing a complete reshuffle of the board.

Telecom Italia previously called a shareholders' meeting for May 4 to vote on a new board, but then Elliott made a request to nominate six board members at the AGM and 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 01:48 ET (05:48 GMT)

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