Bernabe May Cling to Telecom Italia Job on Debt Cut, Dividends

Telecom Italia SpA Chief Executive Officer Franco Bernabe, who presided over a 19.7 billion-euro ($27.3 billion) loss of market value, has boosted his chances of a second term by cutting debt and promising higher dividends.

Bernabe’s mandate ends April 12 when investors vote on whether to renew his contract for another three years. Executives at the Milan-based company’s biggest shareholder, Telco SpA, have made remarks supporting his management and the stock has gained 15 percent this year, trimming the drop since he took charge in December 2007 to 48 percent.