Giuseppe Recchi has held onto his position as executive chairman of Telecom Italia after a boardroom shake-up by majority shareholder Vivendi had threatened to unseat him.
The French media and telecoms conglomerate owns 24 per cent of Telecom Italia and this week appointed 10 out of 15 of the directors to a newly formed board of the telecoms company. It listed Arnaud de Puyfontaine, chief executive of Vivendi, at the top of its list which was interpreted as a sign that it was pushing for him to also become chairman of Telecom Italia.
Yet after a board meeting on Friday, the Italian company revealed that Mr Recchi would retain his role with Mr de Puyfontaine taking a deputy chairman position. Flavio Cattaneo remains as chief executive of the Italian company.
The shape of the board comes against a backdrop of increasing regulatory concern over Vivendi’s influence over Telecom Italia, with the European Commission investigating the French company’s control of the Italian business. Vivendi offered unspecified concessions on Friday as part of the anti-trust case.
Meanwhile Italian regulator Agcom has said that Vivendi’s ownership of significant stakes in both Telecom Italia and Mediaset, in which it has a 28 per cent share, is in breach of anti-trust laws. It has said that the French company must reduce its stake in one of the companies and present a plan to do so within 60 days.
Vivendi shares rose by 2 per cent while Telecom Italia’s stock added 4 per cent.