MILAN (Reuters) - Telecom Italia (TIM) (MI:TLIT) said on Thursday the majority of its board members had resigned following the governance challenge launched by activist investor Elliott and a new board would be voted on by shareholders at a meeting on May 4.
Deputy Chairman Giuseppe Recchi resigned, as expected, after having accepted a position at a company earlier this year. Other seven directors stepped down, effective April 24, to allow shareholders to vote a fully new board.
Those directors hope "this move would help to clarify and provide certainty to the governance of the company, passing the responsibility of appointing the new board to the shareholders' meeting", the company said in a statement.
Earlier this month Elliott Advisors said it had taken a stake in TIM and proposed to replace six board members in a bid to improve strategy, value and governance and shake up the way top shareholder Vivendi (PA:VIV) runs the company.