Rome, Italy – Poste Italiane SpA launched a public takeover bid on Sunday for Telecom Italia SpA (TIM), valuing the deal at approximately €10.8 billion ($12.5 billion), according to statements released by both companies.
The offer, comprised of both cash and newly issued shares, aims to secure full control of TIM and ultimately delist the former phone monopoly from the Euronext Milan exchange. Poste Italiane, already TIM’s largest shareholder with a 27% stake, is offering 0.167 euros in cash and 0.0218 newly issued Poste shares for each TIM share tendered, representing a 9.01% premium over Friday’s closing price.
The proposed transaction would combine Italy’s two largest industrial entities, creating a group with pro forma revenue of 27 billion euros and an operating profit of 5 billion euros, employing over 150,000 people. Poste Italiane anticipates pre-tax benefits of 700 million euros annually from the merger, with 500 million euros stemming from cost reductions, including lower financing expenses.
Poste Italiane’s board of directors approved the offer, which is contingent upon securing adhesion from shareholders representing at least 66.67% of TIM’s capital. The company expects to complete the transaction by the end of 2026. A capital increase has been approved to facilitate the issuance of new Poste shares as part of the exchange consideration.
The bid comes amid a growing focus on national digital infrastructure, with governments and corporations alike prioritizing control over key telecommunications assets. Poste Italiane emphasized the strategic importance of the acquisition, citing the combined group’s enhanced position in networks, cloud infrastructure, and secure data handling capabilities, aligning with European Union efforts to bolster data sovereignty.
TIM’s board of directors is scheduled to meet on Monday to discuss Poste Italiane’s offer, a company spokesperson confirmed. The outcome of that meeting will be a key indicator of the potential success of the takeover bid.
According to the offer details, for every 5,000 TIM shares delivered, shareholders will receive 109 Poste shares and a cash payment of 835 euros. The total consideration for the acquisition is expected to be approximately 10.8 billion euros.
