(Bloomberg) — Telecom Italia SpA Chief Executive Officer Luigi Gubitosi resigned on Friday, people familiar with discussions at the company said, less than a week after private equity firm KKR & Co. made a preliminary 10.8 billion-euro ($12.2 billion) bid for the former Italian phone monopoly.
The company’s directors, meeting Friday evening, accepted the CEO’s offer to step down, said the people, who asked not to be identified because the discussions aren’t public.
Gubitosi was already under intense pressure following a surprise profit warning last month that led to a rift with Vivendi SE, Telecom Italia’s largest shareholder, people familiar with the situation had said previously.
Chairman Salvatore Rossi will take over the CEO role on an interim basis, with the company’s head of Brazil operations, Pietro Labriola, being promoted to the position of group general manager, the people said. Officials at Telecom Italia declined to comment.
Gubitosi’s efforts to boost premium services have failed, while Vivendi has increased the pressure on the beleaguered CEO following repeat profit revisions.
His departure would mark the fourth overhaul of top management at Telecom Italia in less than six years. Vivendi has rejected the KKR bid, made on Nov. 21, as too low.
The company operates in one of the world’s most competitive telecommunications markets, with cut-throat prices that have eroded margins for the one-time state-owned monopoly.
(Updates with meeting and deliberations from second paragraph.)
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