Under-fire Telecom Italia CEO faces board showdown

MILAN: Telecom Italia (TIM) CEO Luigi Gubitosi faces the board on Thursday at a meeting sought by top investor Vivendi following two profit warnings in three months at Italy’s former phone monopoly.

Having failed to stem a steady revenue decline in TIM’s crowded domestic market, Gubitosi last month outlined to the board plans to squeeze cash out of the group’s assets, including its prized fixed-line grid that supplies services to millions of Italian households and businesses.

His proposals, aimed at bringing in new investors into the assets of the debt-laden company, have failed to get Vivendi’s backing at last month meeting, people close to the matter have said.