The sale of fixed network assets was a crucial factor in Pietro Labriola’s re-election as CEO of Telecom Italia for a second term. Despite opposition from investment companies Merlyn Partners and BlueBell Capital Partners, who won two and one seat respectively, Labriola’s strategy to offload assets to KKR through NetCo received strong support from shareholders.
Labriola’s slate of candidates won six out of nine seats on the board of directors during the annual meeting. The sale of the fixed-line business, valued at €18.8 billion, aims to reduce Telecom Italia’s debt load. However, not all shareholders were in favor of this decision. Vivendi, the operator’s largest shareholder holding 24 percent, abstained from voting on the matter.
Despite this opposition, Labriola’s victory in the shareholder vote demonstrates widespread approval for this strategic decision. The sale will allow Telecom Italia to focus on its core business and improve its financial position. This is an important step towards a more sustainable future for the company and its stakeholders.