The former CEO of Telecom Italia has left the company's board of directors
Telecom Italia (TIM) said on Friday that former CEO Luigi Gubitosi has left the company's board, removing an obstacle that has prevented Italy's largest phone group from choosing its successor.
Yayınlanma: 18 Aralık 2021 18:18
Güncellenme: 14 Kasım 2024 16:00
The boardroom crisis hampered the group's response to a $37 billion takeover approach by US private equity fund KKR, which was pending access to Telecom Italia (TIM) data before making a formal bid.
Telecom Italia (TIM) said it was conducting a "comprehensive evaluation" of the proposal while also "considering other strategic alternatives... to decide, among other things, whether to grant access to the due diligence requested by KKR."
TIM also said the search for a new CEO is ongoing, but did not say when it might appoint a new boss.
KKR's offer is dependent on support from the company's board of directors and the Italian government, but TIM's largest shareholder, Vivendi, said it did not reflect TIM's value.
The French media group is working on an alternative plan, sources have said.
Both strategies envision the separation of TIM's services from infrastructure assets, which will require investments that need to be upgraded as part of the nation's multibillion-dollar digital move.
Severance package
In the statement made by the company, it was stated that the agreement with TIM provides a severance package of approximately 6.9 million euros ($7.8 million) for Luigi Gubitosi, which will be paid by January 3.
Gubitosi stepped down as CEO last month after coming under pressure from Vivendi and losing the trust of a majority of board members after a series of profit warnings.
However, Gubitosi did not resign from his board of directors, preventing TIM from appointing a new CEO who was pending a vacant board seat.
Last month, TIM appointed Pietro Labriola as chief executive officer of its award-winning Brazil business, and sources indicated that he is expected to be named CEO when a board seat becomes available.
But sources familiar with the process said there were differing views across the board as to who would be the best candidate to ensure stable leadership over the long term.
TIM said, "The board of directors is continuing the succession planning process to appoint a new CEO and will complete it as soon as circumstances allow."
