Telecom Italia CEO Meets With Top Shareholder, Vivendi

By Manuela Mesco and Nick Kostov 

Telecom Italia SpA Chief Executive Marco Patuano traveled to Paris on Wednesday to meet with top management at Vivendi SA, as the Italian telecommunications operator's top shareholder applies more pressure on the executive to deliver a turnaround, a person familiar with the matter said Thursday.

Vivendi, a French media company, has plowed some EUR3.5 billion, or about $3.8 billion, into Telecom Italia and is pushing Mr. Patuano to cut costs faster and address such strategic challenges as whether the company should pursue a sale of its Brazil unit, people familiar with the matter said.

Vivendi will start agitating for Mr. Patuano's departure if results don't improve and the management of Telecom Italia fails to align with the wishes of the French company, these people said.

"As you can imagine, Vivendi isn't here to support a steady-as-she-goes strategy," one of the people said.

The Italian firm is under pressure to deliver results after years of no revenue growth and strategic zigzagging. Vivendi, which held 23.8% of Telecom Italia on Feb. 29, has been exerting more influence over the Italian firm's strategy since it gained four seats in Telecom Italia's board in December.

Write to Manuela Mesco at [e-mail] and Nick Kostov at [e-mail]

(END) Dow Jones Newswires

March 03, 2016 14:56 ET (19:56 GMT)

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