Telecom Italia CEO Flavio Cattaneo Resigns

(RTTNews) - Italian telecom giant Telecom Italia SpA (TIAOF.PK, TI) on Monday said Chief Executive Flavio Cattaneo has resigned. The move is said to be following mounting tensions with Telecom Italia's largest shareholder Vivendi SA.

The company and Cattaneo have agreed on the consensual termination of his employment with the firm, after the completion of the major and extraordinary turnaround of the business.

In a statement, Telecom Italia said, "The Company thanks Mr Flavio Cattaneo for the major task he undertook. It is universally recognised that such a recovery has never before been seen, making it the first among the major telecommunications companies that were formerly incumbent in Europe and the US, in terms of speed of growth of all main top line drivers, and of profitability, as well achieving the greatest coverage in fibre."

The company further said it will embark on a second phase of the plan, a conventional company relaunch that pursues the targets set by Cattaneo, first and foremost, the fibre plan.

Cattaneo had held the top job since March 2016. He is the second CEO to leave the company recently as French media and entertainment company Vivendi exerts control over the Italian firm. Cattaneo took over from Marco Patuano, who left last year after a disagreement with Vivendi over strategy.

Vivendi holds a stake of nearly 25% in Telecom Italia, just below the level at which an investor must make a takeover bid.

Cattaneo's exit reportedly will take effect on July 28.