Small investor group seeks seat on Telecom Italia’s revamped board

MILAN, March 25 (Reuters) – ASATI, an association representing small investors in Italian telecommunications company Telecom Italia (TIM) (TLIT.MI), announced on Monday its submission of a list of candidates for the upcoming board of directors election at the annual general meeting next month.

ASATI aims to nominate a director to represent 8,000 small TIM shareholders collectively owning approximately 1% of the company, stated Franco Lombardi, the association’s leader.

He mentioned that the list of eight nominees would exclude a candidate for the chief executive officer position.
TIM shareholders will convene on April 23 to vote on the board’s renewal, with current CEO Pietro Labriola seeking a second term as part of the candidate slate proposed by the outgoing board.

Labriola has faced criticism following a significant stock decline this month subsequent to the disclosure of the financial projections associated with the sale of TIM’s domestic access network to U.S. fund KKR (KKR.N).

However, ASATI expressed agreement with TIM’s strategic plan, endorsing the network sale and debt reduction initiatives.
TIM investor Merlyn Partners also revealed intentions to present a slate of board candidates for the renewal process last week.

Previously contesting the network sale, Merlyn advocated for TIM to expedite the transaction while divesting its Brazilian-listed subsidiary and domestic retail business to concentrate on the value-added business segment.

Despite backing from the Italian government and a valuation of up to 22 billion euros, the KKR deal encountered opposition from TIM’s major shareholder, Vivendi (VIV.PA), which raised concerns about the viability of the remaining business and challenged the deal in court.

With a 24% stake, Vivendi holds significant influence and could impede Labriola’s reappointment.