Elliott Management Corp. Rejects Vivendi's Criticism of Telecom Italia Management

   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 [e-mail]

(END) Dow Jones Newswires

September 10, 2018 04:50 ET (08:50 GMT)

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