Telecom Italia gets new boss

30th March 2016, Comments 0 comments

Telecom Italia on Wednesday appointed Flavio Cattaneo as its new chief executive, nine days after his predecessor quit following a clash with France's Vivendi, the company's biggest shareholder.

Marco Patuano stepped down on March 21 after Vivendi reportedly demanded larger-than-planned cuts under a restructuring programme he had outlined for 2016-18.

The move was seen by analysts as a sign of Vivendi, which has this year tripled its stake in the company to nearly 25%, exerting greater influence over its strategic direction.

Telecom Italia slipped from a profit of 1.35 billion euros in 2014 to a net loss of 72 million euros last year after investing heavily in upgrading its fixed and mobile networks in Italy against a backdrop of declining sales.

Cattaneo, 53, comes in from private rail firm NTV and was already a non-executive director at Telecom Italia prior to his appointment as CEO.

He previously served on the boards of several other major Italian companies, including Generali.

© 2016 AFP

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