Elliott Management investment in Telecom Italia in 2018

Elliott Management invested in Telecom Italia in 2018 and made public a presentation for it. If you are interested to learn about how hedge funds write presentations, here is one for you to learn from.

About the Elliott Management deck(s)

All information is public information (I won’t share anything confidential on this site).

Deck one

This is the initial deck Elliott Management shared on Telecom Italia.

Deck two

This is the second deck from Elliott Management on Telecom Italia.

Deck three

This is the third deck from Elliott Management on Telecom Italia.

About the deal

In March 2018, activist investor Elliott Management made a significant move by acquiring a 6% stake in Telecom Italia (TIM), positioning itself as a major shareholder with the intent to influence the company’s direction. Almost immediately, Elliott expressed concerns regarding governance failures and poor stewardship at TIM, particularly criticizing Vivendi, TIM’s largest investor, for actions that allegedly eroded shareholder trust and diminished share value. This move set the stage for a battle for control over TIM’s board, as Elliott aimed to overhaul governance practices and ensure high-quality, independent stewardship.

The ensuing battle between Elliott Management and Vivendi spanned 2018 and 2019, with Elliott striving to assert its influence and enact changes within TIM’s governance structure. The hedge fund was steadfast in its pursuit of aligning TIM with international corporate governance best practices, advocating for constructive engagement with Italian government and regulators to maximize the company’s asset value. Throughout this period, Elliott’s vision for TIM remained focused on transforming its prospects through effective stewardship and addressing conflicts to ensure proper management of the company’s assets.

Overall, Elliott Management’s investment in Telecom Italia was marked by strategic maneuvers aimed at addressing governance concerns and enhancing shareholder value. Their efforts underscored a commitment to fostering transparency, accountability, and sustainable growth within TIM, ultimately shaping the company’s trajectory and governance practices during a pivotal period in its history.

About Elliott Management

Elliott Management Corporation is a prominent American hedge fund founded by billionaire investor Paul Singer in 1977. With headquarters in New York City, Elliott is known for its activist investing approach, which involves taking significant stakes in companies and then actively engaging with management to push for changes aimed at increasing shareholder value. The firm has gained a reputation for its aggressive tactics and willingness to challenge corporate boards, often through shareholder activism campaigns and legal battles.

Over the years, Elliott Management has been involved in numerous high-profile activist campaigns targeting companies across various industries, including technology, finance, and energy. Some of its notable campaigns include pushing for strategic changes at companies like EMC Corporation, Compuware Corporation, and Arconic Inc. Elliott is also known for its involvement in distressed debt investing, where it acquires the debt of struggling companies and seeks to restructure their operations for profit. With its track record of successful activist interventions and its substantial assets under management, Elliott Management continues to be a significant player in the world of finance and investment.

About Telecom Italia

Telecom Italia, officially known as TIM (Telecom Italia Mobile), is Italy’s largest telecommunications company and one of the leading providers of telecommunications services in Europe. Headquartered in Rome, Telecom Italia offers a wide range of services, including fixed-line and mobile telephony, internet, and digital television. The company operates a comprehensive network infrastructure, providing coverage to millions of customers across Italy. Telecom Italia’s mobile division, TIM, offers voice, data, and mobile internet services to both consumer and business customers. Additionally, Telecom Italia provides broadband internet and fixed-line telephone services to residential and business customers, as well as digital television services through its TIMvision platform. With a commitment to innovation and customer service, Telecom Italia continues to invest in expanding its network infrastructure and introducing new technologies to meet the evolving needs of consumers and businesses in Italy.

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