Gubitosi Prepared to Step Down from CEO Position at Telecom Italia

Luigi Gubitosi, CEO of Telecom Italia, asked the board to take swift action in deciding on a takeover bid by investment company KKR. He has indicated that he is willing to step aside if it would speed the evaluation process.

TIM CEO informed the board by letter he was ready resign, arguing it is now time to take action and appoint advisers to decide on the bid, according to Reuters. He added the company could technically be ready to hand over its books to KKR within 72 hours to conduct due diligence.

Gubitosi faced mounting pressure from Telecom Italia’s largest shareholder Vivendi before KKR made its €10.7 billion takeover offer, with the French group reportedly considering a replacement CEO following concerns about the operator’s poor performance. Vivendi opposes KKR’s bid, stating it is not interested in selling its 24 per cent stake in Telecom Italia.

In his letter, Gubitosi reportedly added time-wasting attitudes by the board could be interpreted as an attempt to defend the interests of certain shareholders and should be avoided. Bloomberg reported CVC Capital Partners held talks with KKR about potentially teaming on the takeover bid. The news agency stated CVC had been assessing a potential acquisition of Telecom Italia for several months and the two investment companies are now discussing the merits of a joint bid rather than rival offers.