There is no peace for Telecom Italia shares. After the partial recovery of the last few weeks, the title sinks on the Stock Exchange, dropping 5,25% to 0,524 euros (-3,36% savings) following the new clash between Elliott and Vivendi in view of the meeting scheduled for March 29 called to express itself on the French request to revoke the 5 directors of Elliott, including the chairman Fulvio Conti. The other four are: Alfredo Altavilla, Massimo Ferrari, Dante Roscini and Paola Giannotti de Ponti. The French shareholder also requested the appointment of 5 other directors: Franco Bernabè, Rob van der Valk, Flavia Mazzarella, Gabriele Galateri di Genola and Francesco Vatalaro.
The "thinking" of traders who consider the purchases by the Cassa Depositi e Prestiti to be concluded also pushed the shares downwards. We remember that CDP rose to 8,7% of Tim's equity, his goal was to get just under 10%.
Returning to the clash, the question and answer between the two partners is started yesterday, March 11, when through a document, the fund led by Paul Singer underlined that Tim has achieved more results in 100 days of the new CEO Luigi Gubitosi than in a year under the management of Amos Genish, accusing the French group of having “ 'launched an unrelenting series of aggressive attacks on the company, the board and other stakeholders. In doing so, Vivendi is undermining the chances that the new management can bring the company back on the tracks of stability and normality".
Immediate response from Vivendi who drafted a list of “Elliott's and Paul Singer's practices”, also recalling the fine imposed on the US fund by the AMF, the French Consob and referring to an article in Fortune magazine which accuses the US fund of even undermining the families and children of the managers of its target companies.
In this context, underlines Equita Sim, the ISS proxy advisor suggested not to vote on Vivendi's proposal to revoke 5 directors from the Elliott list”, during the meeting at the end of March, a position that analysts accepted as "significant support" for Elliott who, in fact, welcomed the company's endorsement.
The ISS rightly concludes that Vivendi has failed to be convincing that the change to the company's board of directors is justified, nor has it presented any substantive arguments relating to performance.
Soon, according to Equita, they will also be exposed other proxy advisor companies, starting with Glass Lewis. 'We believe that the confirmation of the current board is very probable and we hope that, once the shareholders' dispute is over, the board will be able to work with greater serenity for the execution of the plan”, underline the analysts.
