Telecom Italia Board Said to Meet Nov. 11 at Vivendi’s Request
(Bloomberg) -- Telecom Italia SpA’s board will meet Nov. 11 as requested by France’s Vivendi SA, its largest shareholder, after stunning investors with a surprise guidance cut this week, people familiar with the matter said.
The extraordinary meeting will focus on a potential reorganization and on strategies to revive the phone carrier’s fortunes, including reviewing options for the network, the people said, asking not to be named discussing confidential deliberations. Vivendi wants Chief Executive Officer Luigi Gubitosi to accelerate turnaround plans after the disappointing profit outlook.
Spokespeople for Telecom Italia and Vivendi declined to comment.
Vivendi called for a board meeting after Telecom Intalia cut earnings guidance through 2023. Third-quarter earnings were slightly below analyst estimates as competition in its domestic market remains intense.
Read More: Telecom Italia Slumps After Guidance Cut Disappoints Vivendi
Telecom Italia, the year’s worst performer on the Milan stock exchange, is “highly committed” to extract more value from its assets, starting from the landline grid, Gubitosi said on a call with analysts Thursday. The carrier’s network accounts for most of the company’s value, he added.
Gubitosi, a former Merrill Lynch & Co. banker, has been trying for the last two years to push through a merger with state-backed network competitor Open Fiber SpA. But Mario Draghi’s government has put the plans on hold amid concerns that the move would spark antitrust concerns from the European Union.
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