Breaking News
Investing Pro 0
Black Friday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Vivendi reaffirms support for TIM CEO, decries 'rumor campaign'

Stock Markets Oct 06, 2018 01:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Telecom Italia CEO Amos Genish gestures during a debate at the RAI state television headquarters in Rome
 
TLIT
+0.13%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
VIV
+0.48%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ILD
0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SXKP
+0.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

PARIS/MILAN (Reuters) - Top shareholder Vivendi (PA:VIV) reaffirmed its support for Telecom Italia's (TIM) (MI:TLIT) Chief Executive Amos Genish, while accusing activist fund Elliott of running a "rumor campaign" to discredit him.

The French media group, which owns 24 percent of TIM, has been at loggerheads with Elliott since the U.S. hedge fund took a stake in Italy's biggest phone group earlier this year and ended up wrestling board control away from Vivendi in May.

The battle of words has intensified in recent months as TIM fell under pressure due to tougher competition at home, which in turn prompted speculation that Genish's position at the company could be at risk.

Shares in TIM are down around 30 percent so far in 2018, worse than a 15 percent fall in the European telecoms index (SXKP).

"Vivendi supports TIM's CEO Amos Genish unreservedly and values his contribution," Vivendi said on Saturday, confirming comments also reported by Italian media on Saturday.

"We believe that this vicious rumor campaign is orchestrated by Elliott, whose lack of organization is bringing down Telecom Italia ," added Vivendi.

The attack follows a similar move last month when Vivendi said TIM's performance had been "disastrous" since Elliott seized control of the Italian firm's board.

When contacted by Reuters on Saturday, Elliott referred to the statement it had released in response to Vivendi's previous accusations in September.

At the time, Elliott said Vivendi had "fallen prey to the 'short-termism' it has previously decried", casting judgment on the new board just four months after it was appointed.

It also told the French group that TIM was executing a plan that was "devised and approved by Vivendi" and urged the French group to work toward constructive solutions at the board level.

Under Genish, who was appointed when Vivendi controlled the board, TIM is working on a three-year turnaround plan focusing on a digital transformation and fixing the group's finances.

However, the former state phone monopoly has been facing growing challenges in both fixed and mobile: Broadband group Open Fiber is rolling out a rival fiber optic network while French telecoms group Iliad (PA:ILD) in May launched its low-price mobile offer for Italy.

TIM also committed this week to spending more than 2.4 billion euros ($2.77 billion) - much more than initially expected - on fifth-generation mobile spectrum in Italy, in a move that is likely to raise its debt pile and could affect its ambition to return to an investment grade credit rating next year.

Vivendi reaffirms support for TIM CEO, decries 'rumor campaign'
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email