Telecom Italia confirms CEO Patuano to step down

Telecom Italia SpA is set to part company with Chief Executive Marco Patuano after clashes over strategy with other directors at the telecom operator in which France’s Vivendi SA took a near 25% stake last year.

Telecom Italia confirmed on Monday that it is in advanced talks with Mr. Patuano over the terms of his departure after reports at the weekend that he was about to quit.

The boardroom bust-up follows the appointment of four Vivendi directors to Telecom Italia’s board in December who wanted the operator to be more aggressive about cutting costs, according to a person familiar with the matter.

Telecom Italia Chairman Giuseppe Recchi to is set take over his role on an interim basis, the person familiar with the matter said on Saturday. Mr. Patuano’s formal resignation is expected this week.

Vivendi, the owner of music company Universal Music and French pay-TV company Canal Plus, also expected Telecom Italia to address the future of its Brazil unit, people familiar with the matter had previously said.

Source: MarketWatch