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However, the change has not ended the battle raging at Telecom
Italia between activist investor Elliott and French media group
Vivendi which remains the largest shareholder and voted against
Gubitosi.
A former head of telecoms group Wind and now state-appointed
commissioner of struggling airline Alitalia, Gubitosi succeeds
Amos Genish, the third TIM CEO to leave in as many years, who
was unexpectedly fired last Tuesday over what sources said were
disagreements with board members over strategy.
Telecom Italia (TIM) shares rose 4.4 percent by 0940 GMT,
outperforming a 0.7 percent rise in Europe's telecoms index.
"The exit of Genish and the appointment of Gubitosi add
speculative appeal but also strategic and governance
uncertainty," Banca Akros said in a note.
Gubitosi was appointed to the TIM board after a boardroom coup
in May in which Elliott wrested control from Vivendi.
The former Merrill Lynch banker is expected to pursue the
activist agenda proposed by Elliott, which included the spin-off
of TIM's network infrastructure and its merger with smaller,
state-backed broadband rival Open Fiber, asset sales and a
conversion of its savings shares.
However, Genish, who had been pursuing a three-year turnaround
plan, remains on the board and is determined not to give up
without a fight.
He said on Sunday he would seek to call a shareholder meeting to
have investors decide on the drastic change in strategy.
Vivendi voted against Gubitosi, a spokesman for the French
investor said, adding it would be up to shareholders to decide
what is the right board to roll out TIM's future strategy.
(Reporting by Agnieszka Flak; Editing by Keith Weir)
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