Vivendi to Examine Elliott Comments With Open Mind; Favors CEO Plan

   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 [e-mail]

(END) Dow Jones Newswires

March 16, 2018 06:36 ET (10:36 GMT)

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