Tim, the race for the new board of directors begins
With the board of directors meeting scheduled for today, the path towards the appointment of Tim's new directors officially opens. The current board, created under the leadership of Luigi Gubitosi and Salvatore Rossi, was formed following a model known as the “board list”. CEO Pietro Labriola seems to lean towards maintaining this approach also in the future, hypothesizing a list that will probably lead to his reconfirmation at the helm of the group. Today's meeting should serve to take note of the update of the regulation necessary for theto compile this list, even if the item will not be officially on the agenda.
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The first actual decisions will be postponed to the first board of directors of 2024, scheduled for January 18. However, adopting a board list appears to be a challenging task, considering that the practice requires broad consensus from large shareholders. Tim, currently involved in a conflict with Vivendi, its main shareholder with 24%, may find it difficult to secure such consensus. The topic of the presidency will also be on the agenda, with Salvatore Rossi, the current president, having confirmed his unavailability for a new role. The search for a new president could be complicated by the fact that normally the incumbent president is involved in the formation of the board of directors' lists. The situation could get further complicated considering that Rossi is leaving. A possible solution could be to rely anyway Rossi will supervise the formation of the list, considering his impartial position, but this could generate further tensions with Vivendi and within the board.
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Among the possible changes, the possibility of reducing the number of members of the new council from the current 15 to potentially nine is also being discussed. However, the main problem to be addressed concerns relations with Vivendi, which seems to be preparing to contest the board's decision to start the sale of the Tim network (Netco) to Kkr. The disputes concern the fact that the transaction was not submitted to the related parties committee of Tim and that the sale was approved directly by the board without an extraordinary meeting.
Vivendi seems intent on filing an appeal on the merits rather than an urgent appeal, bringing the matter before the judge, with longer timescales than an emergency appeal. Meanwhile, the working relationship between Rothschild and Vivendi, the consultancy firm that had valued Netco at 31 billion euros, ended by mutual consent, raising doubts about KKR's offer.
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