A group of Italian Telecom Italia has released its director general Amos Genis, removing a man whom some investors have considered as an obstacle to the campaign for a more aggressive restructuring of the company, Reuters said.
Genius was appointed last year to lead a poorly performing, once monopolistic TIM, but then directors supported by the Elliott Fund took control of the board.
Telecom Italia announced that a meeting will be held on Sunday to appoint a new CEO. The company does not give any explanation for the quick removal of Genius, almost a year after he took control of the poorly functioning telephone.
Genius was heading towards a three-year business restructuring plan focusing on the digital transformation and TIM finance, but the sources say that some directors of Elliott want to prioritize the potential distribution of fixed-line networks.
On Monday, Gennys made a statement supporting the idea of combining TIM resources with fixed-line telephony with a broadband network developed by a smaller competitor, Open Fiber, with TIM able to control the connected network. Italy is preparing to introduce legal changes that will lead to such a merger, commented sources familiar with this matter.
Vivendi reacted sharply to what he described as an insidious and cynical move by some board members who secretly turned against Genius, convincing the board to act when he was abroad in the office.
The meeting took place while Genius was in South Korea. He called the conversation, the source known for this matter. TIM shares fell by about 1% after the company's statement, but quickly recovered.