Luigi Gubitosi has resigned as CEO of Telecom Italia (TIM) following a takeover attempt from a US investment group.
Gubitosi is the fourth CEO to leave TIM in the past six years.
Last week, TIM received a €10.8 billion takeover offer from US-based investment company KKR at a time of major financial difficulty for the telco. Gubitosi originally brought KKR into TIM in 2020, with a €1.8 billion deal for a 37.5% stake in TIM-owned FiberCop.
Gubitosi had been placed under additional pressure from top investor Vivendi, which had been pushing to replace the CEO for some time due to the accumulation of €29 billion gross debt. Recent disappointing results also helped to heap pressure on Gubitosi. The exec was also brought in by rival investor Elliott in 2018 with tensions high ever since.
The CEO offered his resignation on Thursday, November 25, writing in a letter that he did not want to stand in the way of the board’s consideration of the takeover deal.
Former central bank official and current TIM chairman Slavatore Rossi has taken on Gubitosi’s powers on an interim basis. Rossi will head up a committee to study the KKR offer, while the executive board will also re-evaluate a football rights deal that has contributed to two profit warnings.
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