TIM CEO Gubitosi resigns as boardroom war rages on
Telecom Italia (TIM) CEO Luigi Gubitosi has resigned amid ongoing boardroom tensions over KKR’s €10.8 billion bid for the company.
Last Friday evening the company announced that the board of directors passed resolution to relieve Gubitosi of his position as CEO and general manager.
Chairman Salvatore Rossi was assigned responsibilities for managing TIM’s assets and activities “of strategic importance for the national defence and security system”.
TIM has moved swiftly to name the head of TIM Brazil Pietro Labriola as its new general manager but the company stated that Gubitosi will remain a member of the board of directors.
Rossi said: “I would like to express great satisfaction with the appointment of Pietro Labriola as TIM's new General Manager, on my own behalf and on that of the entire Board.
“This appointment once again demonstrates the value of the company management and its ability to reward skills, merit and innovation."
Last week it was reported that TIM’s largest shareholder Vivendi, who had been unimpressed over the operators declining financial performance, wanted to replace the CEO but had no plans to sell the company.
The Gubitosi and Vivendi conflict had been escalating since the takeover bid. The former CEO had previously rejected speculation that he was close to KKR after green-lighting a deal to sell 37.5% of national Italian fibre company FiberCop to the investment firm.
KKR has been busy throughout the year acquiring several telecoms companies as part of its growing portfolio. A full rundown of its 2021 telecoms deals can be found here.