Rossi not doing enough says TI board

Guido Rossi, chairman of Telecom Italia (TI) has received a stinging letter from board members at the company, complaining that measures he has introduced to remedy the company’s performance, do not go far enough.

In a report published Tuesday by the Wall Street Journal, TI’s lead independent director, Guido Ferrarini, challenges Rossi’s latest plans, arguing that they will not prevent shrinking profits or cut enough costs.

The Journal has seen the letter written to Rossi which charges that independent directors were not adequately informed of his plans and complain about a lack of transparency at the Italian incumbent.

According to the Journal, Mr. Ferrarini wrote the letter on behalf of 13 independent members of TI’s board.

It says that directors were not told about the negotiations TI had with Spanish operator, Telefonica or the direction those negotiations took. The Journal quotes the letter saying that the board’s strategic committee “was not informed of such negotiations until two days before the last board meeting”.