Telecom Italia chairman quits in row with Pirelli shareholder

Telecom Italia SpA chairman Guido Rossi has resigned from his post following a prolonged falling out Pirelli chairman Marco Tronchetti Provera. Vice chairman Carlo Buora will take on Rossi’s operational responsibilities.

On April 6 Rossi told Italian media that Tronchetti Provera asked him to take over as chairman last September as he wanted Rossi to get him out of an awkward position. Italy’s government was questioning Tronchetti Provera’s decisions regarding alliances and selling parts of the company, and according to Rossi, Tronchetti’s position “seemed unrecoverable.” However, Rossi claims that when he tried to clear up the conflicts of interest that existed between Tronchetti and Telecom Italia, the two men entered on a collision course.

Rossi has denied attempting to block negotiations between Telecom Italia and Telefonica SA. According to Rossi, he spoke at length with Telefonica SA chairman Cesar Alierta, who told him Telefonica could not pay the premium price asked by Tronchetti to acquire a stake in Olimpia, when it would not provide control of Telecom Italia.

At present a number of parties are expressing interest in the Italian telecommunications provider, and the possibility exists that the company may yet still fall into foreign hands.