MILAN, April 9 (Reuters) - Telecom Italia said adecision by statutory auditors to include a vote on boardcandidates proposed by activist fund Elliott in a shareholdermeeting in April was unlawful, adding the company would takelegal action to protect its rights.
TIM said auditors can only intervene when the board does notrespond to a shareholder request to amend the agenda, but notwhen the auditors simply do not agree with the board's decision,which it said was the case in this instance.The board said it had, by a majority vote, decided todistance itself from the auditors' decision, which it called"erroneous and particularly serious".
On top of legal action, TIM said it would also ask marketregulator Consob to consider the matter.
Elliott has taken a stake in TIM and proposed to replace sixboard directors nominated by top investor Vivendi in abid to shake up the way the French media group runs the company.
Following Elliott's move last month, eight board membersnominated by Vivendi resigned, triggering a vote on full boardrenewal at a separate shareholder meeting called for May 4.TIM reiterated on Monday that Elliott's proposal for a votein April was superseded by the call for a full board renewal.
(Reporting by Agnieszka Flak)
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