Elliott accuses Vivendi of short termism amid row over Telecom Italia


U.S. hedge fund Elliott rejected Vivendi’s criticism of the management situation at Telecom Italia Monday, saying the French media conglomerate seems to have fallen prey to “short termism.”

Elliott wrestled control of Telecom Italia’s board away from Vivendi earlier this year, after a two-month campaign to overhaul the way the Paris-headquartered firm had been running the company.

In addition to a governance shake up, Elliott proposed a spin-off and a partial sale of a soon-to-be created network company, a return to dividends and several asset sales.

However, since the New York-based fund took control of Telecom Italia in May, the share price of the former telecoms monopoly has tumbled 35 percent. This despite Elliott having promised to double it within two years, Vivendi said in a statement last week.

France’s Vivendi also said it was “deeply concerned by the disastrous management” at Telecom Italia in recent months, adding the company’s figures were suffering as a result.



Source link

Products You May Like

Articles You May Like

US manufacturing output unchanged in March
Baby T-Rex fossil listed on eBay for $3 million sparks outrage
Earnings are coming in, and higher costs are weighing on profit margins
BAC Q1 2019 earnings: Another record quarterly profit
Forget market downturns, this is biggest threat facing the US economy

Leave a Reply

Your email address will not be published. Required fields are marked *