Telecom Italia CEO Exit Looms After Stock Loses $40 Billion
This article is for subscribers only.
Telecom Italia SpA Chief Executive Officer Franco Bernabe told a parliamentary hearing last week that since 2007 he has helped the phone company shave $11 billion off its debt pile.
What he didn’t remind senators of: writedowns totaling $19 billion since 2011, or a 73 percent slump in the stock during his almost six-year tenure that erased 30 billion euros ($40 billion) in value. At 11 billion euros, Telecom Italia’s market capitalization is two-fifths of its net debt, which is on the brink of a cut to junk by Moody’s Investors Service.