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3/6/2018, 12:12 PM (Source: TeleTrader)
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Elliott builds 6% stake in Telecom Italia – report

Paul Singer, head of Elliott Management Corp., managed to purchase 6% of Telecom Italia SpA for the buyout entity and is launching an initiative to shift strategy, La Repubblica reported on Tuesday. The article said information it obtained from unnamed sources confirms earlier media speculation and that the plan may emerge at today's board meeting.

The activist hedge fund operator allegedly topped the 5% threshold for nominating directors at the annual meeting on April 24. The telecommunications giant is run by chief executive Amos Genish since September. He came from Vivendi SA of France, which controls the management via a stake of nearly a quarter of the company. The Italian news outlet said it learned the investor from the United States is pushing to extract value from the activities in Brazil.

According to sources, many institutional investors, representing 40% of the capital, have been dissatisfied and that they raised the issue of the conflict of interest between Vivendi and Mediaset SpA, in which it holds almost 30%. The Italian broadcaster is controlled by former Prime Minister Silvio Berlusconi's Finanziaria d'investimento Fininvest SpA, or Fininvest SpA.

Breaking the News / IT