Telecom Italia Retains Giuseppe Recchi as Chairman
May 05 2017 - 11:57AM
Dow Jones News
By Manuela Mesco
Telecom Italia SpA said Friday its new board had decided to
retain Giuseppe Recchi as its chairman, deciding against replacing
him with a representative of its largest shareholder, French media
company Vivendi SA.
The decision comes as the French firm awaits the European
Commission's clearance on its control of Telecom Italia before
tightening further its grip on the Italian company.
On Thursday, Telecom Italia's shareholders were called to vote
for the renewal of the company's board. A narrow majority voted in
favour of a list proposed by Vivendi, Telecom Italia's main
shareholder with a 24% stake. The list included Vivendi's top
executives, including Chief Executive Arnaud De Puyfontaine, Chief
Financial Officer Herve Philippe and General Counsel Frederic
Crepin.
The new board --which met Friday for the first time--decided to
retain Mr. Recchi as chairman. Mr. De Puyfontaine remains the
board's vice chairman. Flavio Cattaneo was confirmed as the
company's chief executive, maintaining continuity in
management.
Telecom Italia said Wednesday its first-quarter revenue rose
8.5% compared with the previous year, to EUR4.8 billion euros,
while its operating profit rose nearly 23% to EUR865 million--a
sign that the management's efforts to turn the company around are
bearing fruit.
Telecom Italia's revenues had fallen for years, while debt
continued to expand. The firm struggled amid harsh competition and
a protracted economic downturn in Italy.
Write to Manuela Mesco at Manuela.Mesco@wsj.com
(END) Dow Jones Newswires
May 05, 2017 11:42 ET (15:42 GMT)
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