Elliott Management Corp. Rejects Vivendi's Criticism of Telecom Italia Management
10 September 2018 - 7:05PM
Dow Jones News
By Anthony Shevlin
Elliott Management Corp. on Monday responded to Vivendi SA's
(VIV.FR) criticism of the management situation at Telecom Italia
SpA (TIT.MI), saying that the French media conglomerate has fallen
prey to the "short-termism" it previously decried.
Elliott acknowledged Vivendi's concerns over the Italian telecom
company's share-price performance, but said the problem has
persisted for years.
"Elliott is disappointed that Vivendi has chosen to attack
[Telecom Italia's] management, its board and one of its fellow
shareholders rather than work toward constructive solutions," it
said.
On Wednesday, Vivendi criticized what it called the "disastrous"
management of Telecom Italia since Elliott took control of the
company's board of directors earlier this year.
"The new governance team is failing," Vivendi said. It said
rumors were detrimental to the smooth operation and results of the
telecom company.
On Monday, Elliott said it disagreed with Vivendi's statement.
It said Vivendi's board appointed the current chief executive and
that the independent board hasn't made any significant changes.
Elliott also rejected Vivendi's claims that the American
investment company had promised to double Telecom Italia's share
price.
"Elliott did not and does not make 'promises' to the market. It
is true that Elliott offered an assessment of the upside potential
to the TIM share price over the medium term if a revised,
independent board adopted Elliott's value-creation
recommendations," the company said.
Elliott said it wanted Telecom Italia's shareholders to give the
new board time to show that it can create value for the company in
what is a difficult time for both Italian stocks and telecom
companies in general.
The company said it would welcome Vivendi's help in promoting
"value-creative solutions" at board level.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
September 10, 2018 04:50 ET (08:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Jan 2025 to Feb 2025
Telecom Italia (NYSE:TI)
Historical Stock Chart
From Feb 2024 to Feb 2025
