Vivendi to Examine Elliott Comments With Open Mind; Favors CEO Plan
16 March 2018 - 9:51PM
Dow Jones News
By Marc Navarro Gonzalez
Vivendi SA (VIV.FR) said Friday that it would examine comments
made by Elliott Advisors regarding the strategy and governance of
Telecom Italia SpA (TIT.MI), in which it is the main
shareholder.
Vivendi said it would look at Elliott's comments "with an open
mind," but that the fund was "well-known for its short-termist
initiatives," and it wasn't sure that Elliott's plan would create
value.
Earlier Friday, Elliott Advisors, the U.K. arm of Elliott
Management, sent a letter to Telecom Italia shareholders laying out
its reasons for wanting to replace six of the Italian company's
board members. Among other measures, it suggested selling off part
of the company's Sparkle and NetCo units. Elliott said it holds
about 5% of Telecom Italia's ordinary shares directly and through
financial instruments.
"Poor stewardship under the Vivendi-controlled board has
resulted in deeply troubling corporate governance issues, a
valuation discount and strategic failures," the activist fund wrote
in a letter to shareholders.
Vivendi said it wasn't sure that "the plan to dismantle the
group and destabilize the teams" would be beneficial. Instead, it
said the industrial plan presented by Telecom Italia's Chief
Executive Amos Genish was "promising" and has been well received by
investors.
Vivendi is the main shareholder of Telecom Italia with a stake
close to 25% of the share capital.
Write to Marc Navarro Gonzalez at marc.navarro@dowjones.com
(END) Dow Jones Newswires
March 16, 2018 06:36 ET (10:36 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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