Board of almost 6 hours at the end of which Gubitosi puts the powers back in the hands of Rossi
After a long meeting, which lasted almost 6 hours, during which Luigi Gubitosi handed over the powers as CEO and general manager in the hands of the president Salvatore Rossi (without resigning, therefore remaining in the Board of Directors), the French of Vivendi manage to place their own candidate to lead Tim: as anticipated by Affaritaliani.it the group’s operations will be led by the current CEO of the subsidiary Tim Brasil Pietro Labriola, ready to take on as general manager.
The Extraordinary river bod of Tim had been summoned this afternoon and continued until late evening to examine the possible offer from the American fund Kkr. On the table, however, Gubitosi’s move to surrender his proxies inevitably also ended if this, as explained in the letter, could allow a more serene examination of the dossier.
However, the game remains very open and the attention is focused in particular on Vivendi, Tim’s main partner who, after judging Kkr’s offer insufficient, has made it known that he has no intention of leaving the group’s capital. Another actor expected to make a next move is the Italian government which is still awaiting, before any evaluation, of the formalization of a purchase offer by Kkr or other parties.
Rumors recent days do not exclude the interest of other funds, such as CVC, or even the possibility of Kkr to raise the value of the offer to encourage the go-ahead from Tim’s shareholders. On the board table also the crux of accounts and strategies to restart the group.
The Gubitosi management lasted three years
Gubitosi’s adventure at the helm of Italy lasted three years and a few days Telecom Italia. The manager had joined the board of directors of the tlc group in May 2018, appointed on the recommendation of Elliott, the US fund that opposed the time to Vivendi; he was then appointed Chief Executive Officer and General Manager on November 18 of the same year, replacing Amos Genish, the Israeli leader who had been disheartened a few days earlier. A case that has a certain resonance with the current one, given that at that time the proxies were provisionally assigned to President Fulvio Conti.
Gubitosi’s appointment was greeted in Stock market with a rise in the Tim stock, up 3.9%, in the belief that with the new ad we come to the separation of the network. A hope that will remain illusory, however. In reality, Gubitosi is unable to stop the decline of the stock on the stock market, so much so that in the two following years the price undergoes a cut of almost 50%, reaching a minimum of 0.2852 euros two years later, on 29 October 2020.
After a recovery up to € 0.46, there is a new fall, up to € 0.31 a few days ago, before the accelerated result of Kkr’s offer which sets an indicative price of € 0.505. Gubitosi’s first balance sheet, in 2019, was still promising, with a net profit of 1.3 billion, a return to dividend and a 1.4 billion drop in net financial debt.
The figure of 1.3 billion is also confirmed in 2020. In reality, what is worrying is the continuous decline in revenues, which fell from 19.1 billion in 2018, to 17.9 billion in 2019, to 15.8 billion in 2020. In the first 9 months of 2021, a new slowdown, at 11, 6 billion (-2.2% on the same period in 2020). Before Tim Gubitosi he had been in Fiat with various positions including that of financial director, then in Wind as financial director and CEO. He was also RAI general manager for three years and Alitalia’s extraordinary commissioner for one year.
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