The battle over Telecom Italia seems to have to come to an end, as shareholders were called to elect a new board. Telecom Italia’s directors resigned last March.
Paul Singer, head of Elliott Management, an activist fund, was successful to get two thirds of the seats. He won the battle over the French conglomerate, Vivendi. Despite only have 9% of the shares, Elliott was able to impose its team over Vivendi that possesses 24% of Telecom Italia.
By pointing out the way Vivendi failed shareholder’s interest in Telecom Italia, Singer was able to get a vote in which they had two options. They could either pick up a board composed of ten Italian business personalities selected by Elliott, or keep a team made of Vivendi’s CEO and its employees for the most part.
After that loss, Vivendi stated that it would “take all measures necessary to preserve its value and avoid its dismantling.”