© Reuters. FILE PHOTO: Il logo Telecom Italia (TIM) a Milano. REUTERS / Stefano Rellandini / File Photo
MILAN (Reuters) – Telecom Italy (MI 🙂 (TIM) will hold an extraordinary board meeting on Nov. 26, two sources familiar with the matter said on Saturday amid an internal war for the role of chief executive Luigi Gubitosi that included top shareholder Vivendi (OTC 🙂 is involved.
Gubitosi, who survived a boardroom showdown earlier this month, has come under fire on Italy's former telephone monopoly after two profit warnings within three months.
With an adjusted gross debt of 29 billion euros ($ 33 billion), TIM is battling stiff competition in its homeland at a time when it must invest heavily to support Italy's efforts to improve broadband connectivity.
Gubitosi has outlined projects to squeeze cash out of the company's assets by spinning them off and attracting new investors, but Vivendi turned them down.
The French media giant sees Gubitosi only as a short-term solution to TIM's problems and wants a greater say in the fate of its network resources, sources said.
On Friday, S&P downgraded TIM's long-term rating from BB + to BB due to the decline in revenue and earnings, which in turn boosted the rating agency's assessment of the telephone company's debt burden.
($ 1 = 0.8859 euros)
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