Proxy adviser Glass Lewis backs removal of T.Italia board
MILAN Dec 6 (Reuters) - Proxy advisor Glass Lewis has recommended that shareholders vote in favour of a proposal to remove the board of Italy's Telecom Italia, two sources who have seen the recommendation told Reuters on Friday.
Telecom Italia is the target of a campaign by shareholder Findim, owned by businessman Marco Fossati, and small investors group ASATI aimed at ousting the phone company's board, which they say caters more to the interests of core shareholders, like Spain's Telefonica, than to all other investors.
Findim owns 5 percent of Telecom Italia.
Earlier this week influential proxy adviser ISS recommended to back Fossati's proposal.
One of the sources said Glass Lewis wrote in its report that: "Based on available disclosure, we believe Findim has submitted a fairly compelling case to suggest the incumbent board has, at the very least, undertaken several recent actions that appear to favour Telefonica and its competitive position at the expense of Telecom and its unaffiliated investors."
"Findim has fairly demonstrated independent shareholders are more likely to benefit from a board renewal than from maintenance of the status quo," the report also said according to the source.
Telecom Italia shareholders will hold a general meeting on Dec. 20 to decide on the matter. (Reporting by Danilo Masoni; Editing by Lisa Jucca)
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