New York Hedge Fund Needs the Long Game in Italy
Telecom Italia CEO’s reported M&A plans have merit.
Italy's battle of the billionaires may be a long one.
Photographer: Federico Bernini/BloombergTelecom Italia SpA had problems when it was being dominated by its biggest investor, Vincent Bollore’s Vivendi SA. But the arrival on the shareholder register of activist fund Elliott Management Corp., and its wresting of boardroom control from the Breton billionaire, has hardly helped matters.
The shares have fallen 29 percent in the last six months on a total-return basis. As such, Paul Singer’s New York hedge fund would probably do well to listen to Telecom Italia’s CEO Amos Genish, who Bloomberg News says is eyeing a Brazilian takeover and asset sales. Amid the sniping between Vivendi and Elliott, his two largest shareholders, Genish is still the operator’s best shot at stability.