IDEAS home Printed from https://ideas.repec.org/a/bla/corgov/v15y2007i2p133-143.html
   My bibliography  Save this article

Minority Expropriation and Shareholder Activism Following Olivetti’s Hostile Takeover of Telecom Italia

Author

Listed:
  • Timothy A. Kruse

Abstract

I examine the treatment of minority shareholders and shareholder activism following Olivetti’s successful hostile acquisition of a majority stake in Telecom Italia in 1999. Overall, the evidence is mixed. While Olivetti pursued several operations perceived to be detrimental to Telecom Italia’s minority shareholders, they were atypically vigorous in fighting back. In several cases, Olivetti was forced to abandon or improve the terms of the operations. While Telecom Italia was vulnerable to a hostile takeover attack following its privatisation, the concentration of ownership of listed companies ensures that hostile takeovers will remain rare. Moreover, low participation rates at annual meetings among small investors serves to enhance the power of the controlling blocks.

Suggested Citation

  • Timothy A. Kruse, 2007. "Minority Expropriation and Shareholder Activism Following Olivetti’s Hostile Takeover of Telecom Italia," Corporate Governance: An International Review, Wiley Blackwell, vol. 15(2), pages 133-143, March.
    • Handle: RePEc:bla:corgov:v:15:y:2007:i:2:p:133-143
    DOI: 10.1111/j.1467-8683.2007.00550.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8683.2007.00550.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-8683.2007.00550.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Andrea Melis, 2000. "Corporate Governance in Italy," Corporate Governance: An International Review, Wiley Blackwell, vol. 8(4), pages 347-355, October.
    2. Paolo Santella & Giulia Paone & Carlo Drago, "undated". "How Independent Are Independent Directors? The Case Of Italy," German Working Papers in Law and Economics 2006-1-1148, Berkeley Electronic Press.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sunita Upendra Sharma, 2016. "A Study of Small Shareholders’ Attitude towards Small-shareholder Activism," Indian Journal of Corporate Governance, , vol. 9(1), pages 67-82, June.
    2. Andrea Melis & Silvia Carta & Silvia Gaia, 2012. "Executive remuneration in blockholder-dominated firms. How do Italian firms use stock options?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 511-541, August.
    3. Siti Sakinah Azizan & Rashid Ameer, 2012. "Shareholder activism in family-controlled firms in Malaysia," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(8), pages 774-794, August.
    4. Mauricio Jara‐Bertin & Félix J. López‐Iturriaga & Óscar López‐de‐Foronda, 2008. "The Contest to the Control in European Family Firms: How Other Shareholders Affect Firm Value," Corporate Governance: An International Review, Wiley Blackwell, vol. 16(3), pages 146-159, May.
    5. Michele Meoli & Stefano Paleari & Giovanni Urga, 2008. "Controlling shareholders and minority protection: governance lessons from the case of Telecom Italia," Working Papers 0808, Department of Management, Information and Production Engineering, University of Bergamo.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andrea Melis & Silvia Carta, 2010. "Does accounting regulation enhance corporate governance? Evidence from the disclosure of share-based remuneration," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(4), pages 435-446, November.
    2. Barbara, Petracci, 2011. "Trading when you cannot trade: Blackout periods in Italian firms," International Review of Law and Economics, Elsevier, vol. 31(3), pages 196-204, September.
    3. Sara Saggese & Fabrizia Sarto & Riccardo Viganò, 2021. "Do women directors contribute to R&D? The role of critical mass and expert power," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 593-623, June.
    4. Carlos Drago & Francesco Millo & Roberto Ricciuti & Paolo Santella, 2011. "Corporate Governance Reforms, Interlocking Directorship Networks and Company Value in Italy (1998-2007)," CESifo Working Paper Series 3322, CESifo.
    5. Sabrina Pisano & Luigi Lepore & Rocco Agrifoglio, 2015. "Corporate governance and information asymmetry between shareholders and lenders: an analysis of Italian listed companies," FINANCIAL REPORTING, FrancoAngeli Editore, vol. 2015(2), pages 27-53.
    6. Fausto Bonacina & Marco D’Errico & Enrico Moretto & Silvana Stefani & Anna Torriero & Giovanni Zambruno, 2015. "A multiple network approach to corporate governance," Quality & Quantity: International Journal of Methodology, Springer, vol. 49(4), pages 1585-1595, July.
    7. John Armour & B.R. Cheffins & D.A. Skeel Jr., 2002. "Corporate Ownership Structure and the Evolution of Bankruptcy Law in the US and UK," Working Papers wp226, Centre for Business Research, University of Cambridge.
    8. Crespí-Cladera, Rafel & Pascual-Fuster, Bartolomé, 2014. "Does the independence of independent directors matter?," Journal of Corporate Finance, Elsevier, vol. 28(C), pages 116-134.
    9. Pierpaolo Pattitoni & Barbara Petracci & Massimo Spisni, 2011. "Fee Structure, Financing, and Investment Decisions: The Case of REITs," Working Paper series 30_11, Rimini Centre for Economic Analysis.
    10. Andrea Nannicini & Duarte Pitta Ferraz & Ilídio Tomás Lopes, 2018. "Relationship between top executive compensation and corporate governance: evidence from large Italian listed companies," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 15(4), pages 197-209, November.
    11. Cathrine Seierstad & Gillian Warner-Søderholm & Mariateresa Torchia & Morten Huse, 2017. "Increasing the Number of Women on Boards: The Role of Actors and Processes," Journal of Business Ethics, Springer, vol. 141(2), pages 289-315, March.
    12. Claudia Arena & Simona Catuogno & Alessandro Cirillo & Luca Pennacchio, 2016. "Extract Or Not Extract? The Effect of Familism on Stock Option Plans," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(5), pages 1-82, April.
    13. Michele Meoli & Stefano Paleari & Giovanni Urga, 2008. "Controlling shareholders and minority protection: governance lessons from the case of Telecom Italia," Working Papers 0808, Department of Management, Information and Production Engineering, University of Bergamo.
    14. Buchanan, Bonnie & Yang, Tina, 2005. "The benefits and costs of controlling shareholders: the rise and fall of Parmalat," Research in International Business and Finance, Elsevier, vol. 19(1), pages 27-52, March.
    15. Giulia Romano & Andrea Guerrini, 2012. "Corporate governance and accounting enforcement actions in Italy," Managerial Auditing Journal, Emerald Group Publishing, vol. 27(7), pages 622-638, July.
    16. Baronchelli, Gianpaolo & Bettinelli, Cristina & Del Bosco, Barbara & Loane, Sharon, 2016. "The impact of family involvement on the investments of Italian small-medium enterprises in psychically distant countries," International Business Review, Elsevier, vol. 25(4), pages 960-970.
    17. Esther Pittroff, 2016. "Whistle-blowing regulation in different corporate governance systems: an analysis of the regulation approaches from the view of path dependence theory," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 20(4), pages 703-727, December.
    18. Nicola Moscariello & Michele Pizzo & Dmytro Govorun & Alexander Kostyuk, 2019. "Independent minority directors and firm value in a principal–principal agency setting: evidence from Italy," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(1), pages 165-194, March.
    19. Fernandes, Nuno, 2008. "EC: Board compensation and firm performance: The role of "independent" board members," Journal of Multinational Financial Management, Elsevier, vol. 18(1), pages 30-44, February.
    20. Marco Taliento & Christian Favino & Angelo Fiorella, 2017. "Board of Directors’ “Convexification” and Corporate Results: Recent Evidence from Italy under a Linear/PLS Approach," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(8), pages 100-100, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:corgov:v:15:y:2007:i:2:p:133-143. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0964-8410&site=1 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.