Telecom Italia shares are lower Tuesday, as the management board announced it has removed all powers from current CEO, Amos Genish. The Chairman of the Board will take over the running of the business ahead of a November 18 meeting, to discuss the appointment of a new CEO.
By 1035 BST, Telecom Italia shares were 1.40% lower at €0.52. The stock has been broadly higher in recent weeks.
Telecom Italia problems continue
The two key shareholders in Telecom Italia are fund manager Elliott Management and French telecoms groups Vivendi. The two businesses have been locked in a disagreement over the way the Italian telecoms company is being run.
Following a tense period earlier in 2018, a new board was elected, which is mainly populated with Elliott Management nominees. Former CEO Genish had been appointed to the role by Vivendi.
Following a meeting earlier Tuesday, the Telecom Italia board issued a statement advising they had revoked CEO Genish’s powers at the firm.
“TIM’s Board of Directors met today and deliberated by a majority vote to revoke with immediate effect all powers conferred to Director Amos Genish, giving mandate to the Chairman to resolve further obligations in relation to the existing working relationship with Genish,” the Board said.
“A new meeting of the Board of Directors to appoint a new CEO was convened for November 18,” the Board said. “The Board of Directors thanks Amos Genish for the work done in the interest of the Company and all its stakeholders in these fourteen months of intense activity.”
Troubled turnaround plan?
Genish had been working on a three-year turnaround plan for the Italian business. However, Elliott had previously expressed concerns that more should be done to create a more profitable and viable business model.
Vivendi and Elliott have continued to disagree over the way forward for the business, with Vivendi recently expressing disappointment at the running of the company.
“Vivendi is deeply concerned by the disastrous management of Telecom Italia (TIM) since Elliott took control of its Board of Directors following the May 4, 2018 Shareholders Meeting,” the French business said in September.