(Reuters) - Activist investor Elliott Management is building a stake in Italian telecom operator Telecom Italia (TLIT.MI) (TIM) to counter how its largest investor Vivendi SA (VIV.PA) is running the company, Bloomberg reported, citing sources.
Elliott is considering nominating directors to Telecom Italia's board and will also push for other changes at the company, Bloomberg said. bloom.bg/2I4cgL6
The hedge fund is concerned about the telecom operator’s stock slump and business performance since Vivendi took majority control of the company’s board in 2016, Bloomberg added.
French media group Vivendi, TIM’s top shareholder with a 24 percent stake, in 2017 agreed to sell the phone group’s 70 percent stake in Persidera to win antitrust approval for its plan to gain de facto control of TIM.
Elliott Management declined to comment and Telecom Italia was not immediately available outside regular business hours.
Reporting by Sangameswaran S in Bengaluru; Editing by Jonathan Oatis