Pietro Labriola has been re-elected as CEO of Telecom Italia for a second term after receiving support from shareholders for his strategy to sell the operator’s fixed network assets. Despite challenges from investment companies Merlyn Partners and BlueBell Capital Partners, who won two and one seat respectively, Labriola’s reelection signifies strong support for the sale of the fixed-line business.
The sale of the fixed network assets, valued at €18.8 billion, aims to reduce Telecom Italia’s debt load. The company announced that Labriola’s slate of candidates won six out of nine seats on the board of directors during the annual meeting. This victory in the shareholder vote demonstrates widespread approval for this strategic decision, despite opposition from Vivendi, the operator’s largest shareholder holding 24 percent.
Merlyn Partners and BlueBell Capital Partners have criticized Telecom Italia’s current strategy and its plan to offload assets to KKR through NetCo. However, their efforts were not enough to prevent Labriola’s reelection. The sale of fixed network assets is seen as an important step towards financial stability and growth for Telecom Italia.