trending Market Intelligence /marketintelligence/en/news-insights/trending/bcxktkgzjukg-2xbwvyyiq2 content esgSubNav
In This List

Activist investor Elliott buys 6% in Telecom Italia, mulls taking on Vivendi

Blog

Volume of Investment Research Reports on Inflation Increased in Q4 2021

Blog

Price wars in India: Disney+ Hotstar vs. Amazon Prime Video vs. Netflix

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Next in Tech | Episode 48: The everything that is Industrial IoT


Activist investor Elliott buys 6% in Telecom Italia, mulls taking on Vivendi

Elliott Management Corp. acquired a 6% holding in Telecom Italia SpA, as the activist hedge fund seeks to challenge the latter's largest shareholder Vivendi SA, Italian daily La Repubblica reported.

The hedge fund also plans to present an alternative business plan for Telecom Italia, whose board meets March 6 to approve a new business strategy, according to a Reuters report.

Elliott is building a stake in Telecom Italia in a bid to counter how the French media group is managing the telco, sources familiar with the matter told Bloomberg News. The hedge fund intends to introduce changes, such as nominating directors, to Telecom Italia's board.

Elliott is reportedly concerned with Telecom Italia's performance since Vivendi took majority board control at the telco in 2017. The telecom operator is eyeing about 3,000 job cuts by 2020 as part of its restructuring plans.

Vivendi is under regulatory scrutiny for its stake of about 24% in Telecom Italia, with Italian securities watchdog Consob ruling that the former "exercises de facto control" over the telco. Vivendi, however, has denied the regulator's findings.

Most recently, Vivendi has appealed against the Italian government's decision to enforce its "golden power" decree on Telecom Italia. The decree grants the government special powers over companies of strategic national importance.