Activist fund Elliott won its weeks-long power struggle with Vivendi over Telecom Italia by wresting control of the company's board at a shareholder meeting held near Milan on Friday.
The head of Telecom Italia has said he will resign if a US hedge fund wins a power struggle this week with French telecom giant Vivendi, its largest shareholder, according to reports in Britain.
Telecom Italia's CEO poured scorn on Wednesday on an activist investor fund's chances of breaking telecommunications giant Vivendi's control of the Italian company, ahead of two key shareholders meetings.
Eight members of Telecom Italia's board of directors resigned on Thursday, triggering a re-election of the entire board as an activist investor fund has challenged the control over the company by France's Vivendi.
Activist fund Elliott has fired the first shots in a battle with French giant Vivendi over Telecom Italia, writing on Friday to shareholders to ask for the removal of six board members, including the Italian operator's boss.
Spanish telecom giant Telefonica said on Wednesday it had sold its 8.2 percent stake in Telecom Italia to French media group Vivendi, in a deal estimated to be worth more than a billion euros.
Telecom Italia on Tuesday said its first-quarter net profits were down 39 percent at €222 million from the equivalent figure last year due to falling revenues on its recession-hit domestic market.
Telecom Italia investors elected a new chairman on Wednesday and overhauled the company's board in a bid to bring greater transparency and efficiency to Italy's largest phone group.
Italy's market regulator Consob and financial police on Wednesday carried out an inspection of Telecom Italia's offices in Milan and Rome following the company's decision to sell assets.
Telecom Italia has agreed to sell its stake in Telecom Argentina as well as telephone masts in Italy and Brazil, the troubled Italian giant said after a board meeting held on Thursday.
The chairman of struggling Telecom Italia resigned on Thursday - the victim of a decision to allow Spain's Telefonica to increase its stake in the Italian flagship company.
Spain's Telefonica has reached a deal to raise its stake in the shareholding pact that controls Telecom Italia, increasing its grip on the beleaguered Italian phone company.
