Telecom Italia (TIM) revealed the resignation of Luigi Gubitosi as CEO and the appointment of Pietro Labriola as the general manager to look after the company.
With the resignation of Luigi Gubitosi as CEO, TIM has lost its fourth chief executive officer in six years. Luigi Gubitosi resigned from the CEO position on Friday, following a clash with top investor Vivendi, a week after a $12 billion takeover proposal by U.S. fund KKR.
Luigi Gubitosi remains a member of the Board of Directors of TIM. Luigi Gubitosi holds 3,957,152 shares in TIM.
Pietro Labriola is currently the CEO of TIM Brazil. He will now manage both Brazil and Italy business operations of TIM.
Chairman Salvatore Rossi, a former central bank official, took on Luigi Gubitosi’s remaining powers, including the oversight of TIM’s assets which matter for Italy’s national security.
TIM said it had set up a special committee headed by Salvatore Rossi to study the offer with the help of advisers it was preparing to appoint.
TIM’s nominations committee will work with headhunters Spencer Stuart to ensure a stable leadership for the group over the medium term, taking into account the evolution of TIM’s structure and assets, it said.
The board would also discuss the threat to earnings from a soccer rights deal that has failed to help revenue and has contributed to two profit warnings.
TIM’s disappointing results have strengthened Vivendi’s hand in pushing out Gubitosi who had been brought in by rival TIM investor Elliott in 2018.
Gubitosi remained on as a director, preventing Labriola from joining the board and being named as CEO on Friday, a role which he may take on at a later stage.
Gubitosi, in his letter to the board, criticised directors for stalling on KKR’s offer to please some shareholders.
The statement TIM issued at the end of a six-hour board meeting made no mention of granting KKR access to TIM’s data for due diligence.
Gubitosi had rejected speculation that he was close to KKR, which he first brought on board last year, striking a 1.8 billion euro deal that handed the fund a 37.5 percent stake in TIM’s so-called last-mile network reaching into people’s homes.
TIM’s board first examined on Sunday KKR’s non-binding proposal to take it private in a 33 billion euro deal including debt.
Reuters reported that KKR, which consulted the government before tabling its offer, plans to carve out the network and give state investor CDP – currently TIM’s second-biggest shareholder – a leading role in overseeing it.