Telecom Italia CEO Luigi Gubitosi resigned less than a week after the operator received a takeover bid from investment company KKR, with the boss of subsidiary TIM Brasil Pietro Labriola handed control of the group on a temporary basis.
The operator stated it accepted Gubitosi’s resignation late on 26 November and removed his powers, but he remained a member of the board.
Gubitosi’s departure was expected: Reuters reported he had informed the board he was ready to resign if his exit would speed the process of evaluating and deciding on KKR’s €10.7 billion takeover bid.
Prior to KKR’s bid, Gubitosi was subject to pressure from the company’s current largest single shareholder Vivendi, which was reportedly considering a change at the top following a poor financial performance.
Gubitosi’s exit means Telecom Italia has lost four chief executives in six years. He was appointed in November 2018, replacing Amos Genish.
Labriola has been named as general manager of Telecom Italia, tasked with ensuring the smooth running of the group, while he remains as CEO of TIM Brasil.
Current chairman Salvatore Rossi also takes on additional responsibilities, including overseeing Telecom Italia’s assets which are of national security interest.
Telecom Italia stated it will it put a CEO succession planning process in place.
Earlier this month, when Gubitosi faced pressure from Vivendi, Reuters reported the French group was keen for Labriola to potentially take on the role permanently, so he could be a candidate.
Vivendi is resisting KKR’s takeover offer, insisting it is not interested in selling its 24 per cent stake in Telecom Italia.Subscribe to our daily newsletter Back