Tim, the first Vivendi shareholder, will abstain from the meeting. CEO Labriola towards reconfirmation

Vivendi will abstain from voting for the renewal of Tim’s board of directors at the shareholders’ meeting scheduled for tomorrow. The decision of the first shareholder of the telephone company makes it very probable that the CEO Pietro Labriola and his list will be confirmed, one of the three aiming for the majority of places on the board.

Who supports Labriola

After Vivendi’s decision to abstain from voting on the appointments, the confirmation of CEO Pietro Labriola – who heads the list of the outgoing board together with Alberta Figari as candidate for president – is therefore closer. It could already count on the support of Cdp (9.9%), Assogestioni, Asati (small shareholders) and important international funds including BlackRock, Amundi, Norges Bank and Vanguard.

Merlyn and Bluebell’s numbers

Now, with 23.7% of Vivendi not among the voters, victory at the meeting appears to be a foregone conclusion. The alternative list of Merlyn Capital, according to market sources, would have reached 5% through the solicitation of voting proxies, while the numbers of Bluebell which presented the third list of candidates are not known. While appreciating “their laudable commitment”, Vivendi decided not to support their lists, not wanting to “be associated with decisions relating to appointments” of Tim’s top management. A further sign of disengagement from the industrial destiny of the company, now considered a mere financial participation. With the exception of the union council, therefore, the abstention of the French will concern all the items on the agenda, including the proposal to reduce the number of councilors from 15 to 9.

Vivendi’s appeal against the sale of the network

Whether it is made up of three or six members, an expression of Merlyn or Bluebell, the minority front on the board will probably be combative towards the CEO Labriola and his plan for Tim after the sale of the network to Kkr. The operation was recently notified to the EU Commission which set May 30 as the indicative deadline for completing the investigation. Therefore, if there are no objections from the European Antitrust, the sale will close by the summer, as scheduled. Vivendi will however continue with the judicial appeal against the resolution with which the board of directors approved the transfer of the infrastructure to the American fund in November.