Overview of the Takeover#
Italy’s state-controlled postal operator, Poste Italiane SpA, has announced a significant move to acquire Telecom Italia SpA for €10.8 billion. This bid aims to take over the entire share capital of Telecom Italia, remove it from the Euronext Milan stock exchange, and establish a majority ownership by the Italian state.
Details of the Offer#
The board of directors of Poste Italiane, led by Silvia Maria Rovere, has approved a voluntary public offer. This offer includes a cash payment of €0.167 for each Telecom Italia (TIM) share, along with 0.0218 newly issued Poste Italiane shares for each TIM share tendered. Overall, this values each TIM share at €0.635, which represents a 9.01% premium over TIM’s closing price on March 20.
Financial Implications#
This acquisition is subject to regulatory approvals and is expected to be finalized by the end of 2026. Once completed, the new entity will have the Italian state as the majority shareholder, with a stake exceeding 50%. The combined revenues are projected to be around €26.9 billion, with an estimated earnings before interest and taxes (EBIT) of approximately €4.8 billion. The merger is expected to yield annual pre-tax synergies of €0.7 billion, which includes both cost savings and increased revenue opportunities.
Future Prospects#
Poste Italiane anticipates that this transaction will positively impact earnings per share starting in 2027, while having a neutral effect on dividends for the 2026 fiscal year. The integration will enhance the distribution network, combining around 13,000 post offices and over 4,000 TIM retail stores, serving more than 19 million active digital customers. Additionally, Poste Italiane's initial stake in TIM was acquired in February 2025, and the integration process has already begun with various partnerships.