Pietro Labriola’s Reelection Signals Strong Support for Telecom Italia’s Asset Sales

Despite challenges from investment companies Merlyn Partners and BlueBell Capital Partners, who won two and one seat respectively, Pietro Labriola’s reelection as CEO of Telecom Italia signifies strong support for the sale of the operator’s fixed network assets. These companies, with a 0.5 percent stake each in Telecom Italia, have criticized the operator’s current strategy and its plan to offload assets to KKR through NetCo.

The sale of the fixed network assets, valued at €18.8 billion, aims to reduce Telecom Italia’s debt load. Despite opposition from Vivendi, the operator’s largest shareholder holding 24 percent, they abstained from voting on the matter. Labriola’s victory in the shareholder vote demonstrates widespread approval for this strategic decision.

Labriola was first appointed as CEO of Telecom Italia in 2016 and has led the company through major changes including its merger with Wind Tre SPA in 2017. In his second term, he will continue to implement his strategy of reducing debt and improving operational efficiency by selling non-core assets such as the fixed network business.