Investors Merlyn, Bluebell puts out rival lists for Telecom Italia board

Rival list for Italia Board: Telecom Italia (TIM) is gearing up for a pivotal board renewal, with activist investor fund Bluebell and minority shareholder Merlyn unveiling rival lists of candidates. Shareholders are poised to cast their votes on April 23, with current CEO Pietro Labriola seeking reelection alongside nominees endorsed by TIM's outgoing directors. Meanwhile, a slate from small investors' group ASATI adds further complexity to the mix.

Bluebell's slate, led by former TIM director Paola Giannotti De Ponti, notably lacks CEO candidates, while Merlyn's list boasts 10 names, including former TIM deputy general manager Stefano Siragusa for the CEO role and former Microsoft executive Umberto Paolucci for the chairmanship. ASATI's slate, however, omits candidates for the top executive positions.

This board shake-up unfolds against the backdrop of Labriola's contentious proposal to sell TIM's fixed network assets to U.S. fund KKR, aimed at tackling the company's towering debt levels. Labriola faces intensified scrutiny following TIM's recent share price plunge, triggered by concerns over the financial implications of the asset sale. While the Italian government backs the deal, TIM's major shareholder, Vivendi, stands in opposition.

With a significant 24 per cent stake, Vivendi's support could sway Labriola's reelection prospects if it aligns with a slate advocating for a new CEO. However, Merlyn's endorsement of the KKR deal suggests potential common ground with Labriola's strategy.

TIM's shares have endured a turbulent year, plummeting by over 23 per cent, underscoring the mounting pressure on Labriola to navigate the company through this pivotal juncture in its trajectory.