The TIM logo at the headquarters of the telecommunications operator in Rozzano south of Milan, March 29, 2019 (AFP/Archives/Miguel MEDINA)
Telecom Italia has a new CEO on Friday, Pietro Labriola, a connoisseur of the telecommunications sector who will have to tackle the recovery of the former national flagship, coveted by the American investment fund KKR.
The board of directors of the Italian operator voted “unanimously” for Mr. Labriola, who will retain his functions as general manager, but abandon his position as boss of the Brazilian subsidiary, the group said.
He thus takes over from Luigi Gubitosi, who had resigned in November, criticized from all sides because of poor financial results and the negative evolution of the stock market.
The new number one of Telecom Italia benefits from the support of Vivendi, its first shareholder with a share of 23.75%, which had pushed Mr. Gubitosi, former administrator of Alitalia, towards the exit.
While the history of the operator is studded with quarrels between shareholders, Mr. Labriola called for “cohesion”, essential according to him to meet the “challenges” of the future.
As the first act of his mandate, Mr. Labriola will present the group’s new 2022-2024 strategic plan on March 2, which provides for a split between the fixed telephony network and the service activities and is perceived by the markets as an alternative solution to a takeover by KKR.
A subject that Mr. Labriola, a Telecom Italia executive for 20 years, knows well for having already studied it in 2013 as coordinator of this project, a sea serpent subsequently abandoned before being brought up to date .
– Favorable reception –
The presentation of the main lines of its plan in a select committee on Tuesday found a favorable reception with Vivendi and the Italian Caisse des dépôts (CDP), the second shareholder of Telecom Italia with a share of 9.81%.
Mr. Labriola’s plan also revives the project of a merger of Tim’s network with that of its rival OpenFiber, under the aegis of the CDP, therefore the Italian State, which holds shares in the two companies.
The KKR fund declared itself ready in November to put 10.8 billion euros on the table to buy back the entire capital of the incumbent operator, by offering 0.505 euros per share, an offer deemed too low by Vivendi.
KKR is still awaiting a response from Tim to his request for access to his accounts for an in-depth audit, the so-called classic “due diligence” phase, before launching a takeover bid.
Very patient so far, the American fund will await the outcome of the election of the President of the Republic, the first round of which is scheduled for Monday. This prestigious position could fall to the current Prime Minister Mario Draghi, which would upset the political landscape.
Once the election is over, the fund will have to decide whether or not to launch a takeover even without the green light from Tim, who would thus be seen as “hostile”. Telecom Italia being considered a strategic group for the country, a takeover by KKR would require government approval.
– Waltz of the leaders –
Privatized in 1997 by the government of Romano Prodi, Telecom Italia has witnessed a continuous waltz of its managers and shareholders over the past twenty years. Pietro Labriola will thus be the sixth CEO in ten years.
Described as “brilliant” and “determined” by his peers, Mr. Labriola has spent his entire career in telecommunications. After his debut in Transpac, a former subsidiary of France Telecom, he worked within the British group Cable & Wireless before joining the Italian Infostrada.
In 2001, this manager, who has a reputation as a non-conformist and does not hide his taste for tattoos, joined Telecom Italia. In 2015 he was appointed COO of Tim’s Brazilian subsidiary and became its CEO in 2019.
In November, he was promoted to group chief executive, after Mr Gubitosi resigned as CEO.
Gubitosi’s 2018 appointment was pushed by US activist fund Elliott, the second largest shareholder at the time, which fought a year-long battle with Vivendi over control of the group.
© 2022 AFP
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