Luigi Gubitosi is elected to take over as CEO of Telecom Italy, following Amos Genish's resignation in the last week. Although not yet official, the former Merrill Lynch banker is best ranked according to information released Sunday by sources near the Bloomberg case.
The 10 Board members of Telecom Italia SpA, supported by Elliott Management Corp., agreed with the name Luigi Gubitosi during a video conference last Saturday, said the same sources asking for not being identified because the discussions are confidential. Gubitosi needs support from at least eight of the 15 directors to get the job in the old telecommunications monopoly.
This Sunday, the Board will meet for final voting, and Gubitosi takes an advantage over the former Fiat Chrysler Automobiles NV's chief Alfredo Altavilla as a favorite to lead Italy's largest telecommunications company. The Telecom Itaal Board intends to restore the company's stability, as Elliot's allies reversed Amos Genish as CEO last Tuesday.
Luigi Gubitosi appears to be the leader of a company with a net debt of EUR 25 billion and major pension liabilities. The operator has not paid dividends on its common shares since 2013 and is also facing new competition in its domestic market with the entry of mobile operator Iliad SA this year.