Telecom Italia (TIM) said former Chief Executive Officer Luigi Gubitosi has stepped down from the company’s board.
TIM is yet to decide to a $37 billion takeover approach from U.S. private equity fund KKR, which is awaiting access to TIM’s data before making a formal bid.
TIM said it was conducting a thorough assessment of the bid but also a review of other strategic alternatives … in order to decide, among other things, whether to give access to the due diligence requested by KKR.
TIM also said the search for a new CEO continued, but gave no indication of when it may appoint a new chief.
KKR’s offer is conditional on backing from the company’s board and Italy’s government, but TIM’s biggest shareholder Vivendi has said it does not reflect TIM’s value. The French media group is studying an alternative plan.
The agreement with TIM provides a severance package for Gubitosi of about 6.9 million euros ($7.8 million) that is to be settled by Jan. 3.
Gubitosi quit as CEO last month after coming under pressure from Vivendi and losing the confidence of a majority of board members, following a string of profit warnings.
Earlier, Gubitosi did not step down as a board director, preventing TIM from naming a new CEO pending a free board seat.
Last month, TIM named Pietro Labriola, the head of its Brazilian business, as general manager to look after TIM’s business.