INTERNATIONAL - Luigi Gubitosi’s appointment as Telecom Italia’s new chief executive lifted shares more than 4 percent on Monday as investors bet the veteran Italian manager could push through an aggressive shake-up of Italy’s biggest phone group.
However, the change has not ended the battle raging at Telecom Italia between activist investor Elliott and French media group Vivendi which remains the largest shareholder and voted against Gubitosi.
A former head of telecoms group Wind and now state-appointed commissioner of struggling airline Alitalia, Gubitosi succeeds Amos Genish, the third TIM chief executive to leave in as many years, who was unexpectedly fired last Tuesday over what sources said were disagreements with board members over strategy.
Telecom Italia (TIM) shares rose 4.4 percent by 0940 GMT, outperforming a 0.7 percent rise in Europe’s telecoms index.
“The exit of Genish and the appointment of Gubitosi add speculative appeal but also strategic and governance uncertainty,” Banca Akros said in a note.