US hedge fund in showdown with Vivendi over Telecom Italia

Telecom Italia shareholders are to decide whether the activist hedge fund Elliott Management has the power to revamp the board against the controlling stakeholder, French entertainment group Vivendi.

Elliott is seeking to remove five directors with strong ties to Vivendi at a meeting Friday.

The battle over control of Italy’s former telecom monopoly has intensified in recent weeks, with the Italian government’s investment arm taking a 5-percent stake in April, citing the company’s strategic importance.

Elliott revealed its 9-percent stake earlier this year, saying it wanted to shake up the board as part of a strategy to increase shareholder value.

The company has lost more than a third of its market value since Vivendi’s arrival in 2015. The French company now controls 24.9 percent, just under the threshold to trigger a full takeover.

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