TIM board members had expected change at top for months -source

From Reuters - March 16, 2018

SAO PAULO (Reuters) - The replacement of TIM Participacoes SA Chairman Mario Cesar Pereira de Araujo on Friday was not a surprise to the companys board given the increasingly hands-on approach of the CEO of the Brazilian companys Italian parent, Telecom Italia, a high-ranking source with direct knowledge of the matter said.

Board members had expected a change for months, said the source, who requested anonymity due to the sensitivity of the issue. While there were some mild strategic differences between Araujo and Telecom Italia CEO Amos Genish, Araujos departure was amicable.

On Friday, TIM Participacoes, one of Brazils largest carriers, said it received resignation letters with immediate effect from Araujo and board member Manoel Horacio Francisco da Silva.

Three other board members also resigned, effective April 19, when the companys next shareholders meeting is scheduled. Joao Cox Neto, an investor with extensive experience in Brazilian telecommunications and several other sectors, was named as the new chairman.

Genish, a former CEO of TIM Participacoes competitor Telefonica Brasil SA, took the reins at Telecom Italia in September. Among the changes he has made was hiring a former co-worker at Brazilian telecoms provider GVT to an executive position at TIM Participacoes in February.


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