U.S. hedge wherewithal Elliott rejected Vivendi’s criticism of the management situation at Telecom Italia Monday, saying the French technique conglomerate seems to have fallen prey to “short termism.”
Elliott struggled control of Telecom Italia’s board away from Vivendi elder this year, after a two-month campaign to overhaul the way the Paris-headquartered moored had been running the company.
In addition to a governance shake up, Elliott nominated a spin-off and a partial sale of a soon-to-be created network company, a reappearance to dividends and several asset sales.
However, since the New York-based bucks took control of Telecom Italia in May, the share price of the former telecoms monopoly has get the signal 35 percent. This despite Elliott having promised to dual it within two years, Vivendi said in a statement last week.
France’s Vivendi also powered it was “deeply concerned by the disastrous management” at Telecom Italia in recent months, adding the firm’s figures were suffering as a result.
The extraordinary outburst prompted Elliott to impress back on Monday.
“Vivendi seems to have fallen prey to the ‘short-termism’ it has before decried,” Elliott said.
“How can Vivendi avoid responsibility for the state of affaire damours at (Telecom Italia) when it was in charge for so long and the new board has been benched for so little time?” the company added.
Vivendi owns nearly 24 percent of Telecom Italia helpings while on the other side Elliott owns just under 9 percent.
In an to with CNBC on Friday, Telecom Italia Chairman Fulvio Conti invited to downplay an escalating dispute between Elliott and Vivendi.
“I don’t see a war. I see someone being uncomfortable — same Vivendi — spreading rumors and news that are not accurate,” Conti suggested.
“We are executing a plan that has been devised and approved by them, as a matter of fact promoted by them originally … So I see this is as a storm in a teacup,” he added.