Italy's Italian Telecom group sacked its Chief Executive Officer, Amos Genis, by getting rid of people considered by some investors as a barrier in their campaign for a more aggressive restructuring of the company, Reuters reported.
Genius was appointed last year to run a bad, once monopolistic TEAM, but then directors supported by the Elliott Fund took control of the board.
Telecom Italia said it would hold a meeting on Sunday to appoint a new CEO. The company did not provide any explanation about the abolition of Genius quickly, almost a year after he took control of the poorly performing telecommunications.
Genius is heading for a three-year business restructuring plan that focuses on digital transformation and TIM's finances, but sources say some of Elliott's directors want him to prioritize the potential for unbundling fixed networks.
On Monday, Gennys made a statement supporting the idea of merging TIM fixed network assets with broadband networks developed by smaller Open Fiber competitors, with TIM able to control the combined network. Italy is preparing to introduce a change of law that will lead to such a combination, commented sources familiar with the matter.
Vivendi reacted sharply to what he described as a cunning and cynical move from several board members who quietly turned against Genius, convincing the council to act when he was abroad at the office.
The meeting was held while Genius was in South Korea. He has called the conversation, the source is familiar with this problem. TIM shares fell by around 1% after the company statement but recovered quickly.