Telecom Italia’s board was reportedly ordered to hold an extraordinary meeting by its largest shareholder Vivendi, following a cut in its 2021 guidance.

Bloomberg reported investors were stunned by Telecom Italia’s decision to cut its core profit guidance and Vivendi is now seeking clarity on CEO Luigi Gubitosi’s plans to turnaround the operator’s fortunes.

The meeting will be held on 11 November and focus on a potential reorganisation and future strategy to revive earnings, which will include a review of options for its network.

Aside from its outlook cut, Telecom Italia reported declines in net income and revenue for Q3 as it faces up to fiercer domestic competition.

On an earnings call, Gubitosi said Telecom Italia was “highly committed” to extracting more value from its assets, with particular focus on its network.

Vivendi was notably locked in a bitter battle for control of Telecom Italia’s board with private equity investor Elliott Management, which emerged as an investor in early 2018.

However, since 2019 there has been a period of peace between the two, as they agreed on a common strategy.

In March 2020, Elliott Management reduced its stake in Telecom Italia by almost 3 per cent.