Telecom Italia chief resigns at board meeting
Telefonica move on TI leads to ouster of Franco Bernabé03 October, 18:45
Franco Bernabe's resignation had been anticipated since Telefonica moved last week to tighten its grip on the former Italian State-owned monopoly and implement new corporate strategies.
Bernabe, 65, had been expected to tender his resignation at Thursday's board meeting after he lost the backing of Telco, the Telefonica-led holding company that owns 22.4% of TI.
He had been seeking ways to boost capital and cut debt to avoid falling into junk status.
Matters worsened in August after Fitch ratings agency cut its long-term debt rating due to "the worsening operating conditions in TI's domestic business due to regulatory pressure, a continued mobile price war and a weak economic environment".
The change at one of Italy's largest private-sector employers is bound to upset Italian unions already concerned with what future plans for the troubled company will involve.
Bernabé declined to comment as he left TI HQ.