* Gubitosi quit as CEO , TIM Brasil head named general
* Unions worried about future of 42,500 Italy workers
* New leadership set up precarious - sources
MILAN, Nov 29 (Reuters) - Italy's ruling Democratic Party
(PD) has pledged to actively involve the government in deciding
the future of Telecom Italia (TIM), the country's biggest phone
group which just lost its fourth chief executive in six years,
unions said on Monday.
Luigi Gubitosi stepped down as CEO of the former state
monopoly on Friday following a clash with top investor Vivendi
, just a week after U.S. fund KKR submitted a
10.8 billion euro ($12 billion) proposal to take TIM
During his three-year tenure, Gubitosi secured union backing
for a plan to create a single ultra-fast broadband network in
Italy as the best way to protect 42,500 domestic jobs.
But the project has run aground under Prime Minister Mario
Draghi, with Innovation Minister Vittorio Colao, a former
Vodafone executive, favouring a competitive approach.
"Despite it being considered strategic infrastructure...no
government has ever taken a brave and clear position on the
network," the UILCOM union said in a statement following a
meeting between union representatives and leaders of PD, a key
member of the governing coalition.
"We need politics to step in and place the network under
state control...we're glad that (PD leader Enrico) Letta told us
the government cannot be a spectator this time round, but a
leading actor," it added.
Crippled by a debt pile that successive post-privatisation
takeovers have lifted to four times its core profit, TIM cannot
shoulder the investments needed to upgrade its network and meet
surging connectivity demand.
PD sources told Reuters the party would push for the
government to take a stand on TIM's network, which serves
millions of Italian households and businesses.
The company has appointed head of TIM Brasil,
Pietro Labriola, as general manager, placing oversight of the
group's strategic assets in the hands of Chairman Salvatore
Rossi and setting up a special committee to study the KKR bid.
Gubitosi remains a board member, and two sources close to
the matter said the new leadership arrangement was precarious.
KKR, which already has a stake in TIM's last-mile network,
plans to carve out TIM's grid if its bid is successful, sources
have said, giving state investor CDP a key role in overseeing
The government has welcomed the fund's interest, but said
its stance hinges on plans to secure the investment needed in
TIM's grid and protect employment. ($1 = 0.8861 euros)
(Additional reporting and writing by Valentina Za; Editing by