Telecom Italia CEO Gubitosi resigns amid KKR offer

[MILAN] Telecom Italia chief executive officer Luigi Gubitosi resigned on Friday (Nov 26), less than a week after private equity firm KKR & Co made a preliminary 10.8 billion euro (S$16.76 billion) bid for the former Italian phone monopoly, according to a statement.

The company's directors, meeting Friday (Nov 26) evening, accepted the CEO's offer to step down.

Gubitosi was already under intense pressure following a surprise profit warning last month that led to a rift with Vivendi, Telecom Italia's largest shareholder, people familiar with the situation had said previously.

Chairman Salvatore Rossi will take powers to oversee Telecom Italia's strategic assets as well as partnership and alliances, with the company's head of Brazil operations, Pietro Labriola, being promoted to the position of group general manager.

Labriola, 54, has been at the company for about 2 decades and he is a telecommunications veteran. Formerly the head of fixed-line services for enterprises, he worked in 2013 on one of the phone company's first attempts at spinning off its landline grid.

Telecom Italia is being advised by Spencer Stuart for a succession plan, the company said.

Gubitosi's efforts to boost premium services have failed, while Vivendi has increased the pressure on the beleaguered CEO following repeat profit revisions.

His departure would mark the fourth overhaul of top management at Telecom Italia in less than 6 years. Vivendi has rejected the KKR bid, made on Nov 21, as too low.

BLOOMBERG