Telecom Italia’s auditors rejected a request from top investor Vivendi to bring forward a shareholder meeting by a month, as it seeks to replace five directors on the operator’s board.
In a statement, auditors said they did not have the necessary powers to convene a shareholder meeting, while confirming it is continuing an investigation into the inner workings of Telecom Italia’s current board, as per Vivendi’s request.
A shareholder meeting is scheduled to be held on 29 March, but Vivendi asked for that to be brought forward to the end of February, as a boardroom battle for power continues between the French group and activist investor Elliott Management.
Elliott Management, which recently upped its stake in the Italian operator to 9.4 per cent, took control in May 2018 by securing the votes to appoint two-thirds of the board, but Vivendi has been turning up the heat to regain power.
With a 24 per cent holding, Vivendi is seeking to overhaul the board by replacing five directors appointed by Elliott Management, which it believes will help to turnaround performance.
Vivendi has accused Elliott Management of operating as as a pure financial investor, serving its own interests and taking advantage of a drop in the operator’s share price.Subscribe to our daily newsletter Back