Long Term Returns of Paul Singer’s 5 Activist Targets

4. Telecom Italia S.p.A. (TIT.MI)

Activist Investment: 2018
Long-Term Returns Since Singer’s Investment: -75%
S&P 500 Gain Since Singer’s Investment: 65%

Telecom Italia S.p.A engages in the provision of fixed and mobile telecommunications services. It provides both landline and mobile voice as well as internet services. Through Elliot management, Singer first disclosed a 9% stake in the telecommunications company in 2018, valued at about £1 billion.

After that, the activist investor embarked on a proxy battle, pushing for significant management changes. The push resulted in shareholders voting to form a new board, therefore ending a bitter battle of control between Elliot Management and French conglomerate Vivendi.

The Singer secured two-thirds of the seats on Telecom Italia S.p.A’s board. Vivendi, which owned 24%  of the company, demanded a revocation of five board members appointed by Elliot, insisting the activist investor had instigated a coup. The two warring parties would reach a truce in 2019 with the appointment of a new board.