\tActivist investor Elliott Management increased its stake in Telecom Italia, as an ongoing battle for power with the operator\u2019s largest shareholder Vivendi continues to escalate.<\/p>\n
A SEC filing showed Elliott Management had boosted its holding in the operator from 8.8 per cent to 9.4 per cent, giving it more than 1.4 billion ordinary shares in the Italian operator.<\/p>\n
The activist investor, which gained control of Telecom Italia\u2019s board in May 2018, [1] said in the filing it believes Telecom Italia\u2019s shares were undervalued and represented an attractive investment opportunity.<\/p>\n
The filing indicates Elliott Management bought the shares between 27 December 2018 and 30 January 2019 at a price of between \u20ac0.46 and \u20ac0.53 per share.<\/p>\n
Taking advantage
\nVivendi, which holds a stake of just under 24 per cent in the operator, has been turning up the heat on Elliott Management in its bid to regain control [2] of the boardroom. A meeting is planned for 29 March, where shareholders will vote on Vivendi\u2019s request to replace five directors appointed by Elliott Management.<\/p>\n
In a statement responding to Elliott Management\u2019s stake increase, Vivendi accused the hedge fund of \u201cacting as a pure financial investor\u201d and taking advantage of Telecom Italia\u2019s share drop.<\/p>\n
\u201cThe share price is currently so low because of Elliott\u2019s own terrible governance since 4 May. There is currently no industrial plan,\u201d Vivendi said.<\/p>\n
The wrangling between the operator\u2019s two shareholders has partly led to a drop of 40 per cent in Telecom Italia\u2019s share price over the past year. The company is also straddled with a high debt load of \u20ac25 billion.<\/p>\n
In November 2018, Telecom Italia\u2019s board ousted CEO Amos Genish, who was appointed by Vivendi, and replaced him with Luigi Gubitosi, an Elliott Management-appointed director. However, another board overhaul could put Gubitosi\u2019s position into question.<\/p>\n
As part of its filing, Elliott Management said any changes in the board \u201cat this juncture would be detrimental to the execution and delivery\u201d of Telecom Italia\u2019s value creation plans.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/vivendi-loses-telecom-italia-board-battle\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/vivendi-seeks-to-overhaul-telecom-italia-board\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Activist investor Elliott Management increased its stake in Telecom Italia, as an ongoing battle for …<\/p>\n
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