Finance
Italy halts Poste stake sale as post office shifts focus to TIM revamp
Published by Global Banking and Finance Review
Posted on March 5, 2025
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Published by Global Banking and Finance Review
Posted on March 5, 2025
By Giuseppe Fonte and Elvira Pollina
ROME (Reuters) - Italy has shelved for now the sale of a stake in Poste Italiane while the national post office focuses its attention on how to revamp Telecom Italia (TIM), two people with knowledge of the matter told Reuters on Wednesday.
State-backed financial conglomerate Poste last month became TIM's second largest shareholder by acquiring a 9.8% stake from state lender Cassa Depositi e Prestiti (CDP), in a move backed by leading officials in Prime Minister Giorgia Meloni's office.
With TIM's top management at odds with the phone group's main shareholder, French media group Vivendi, Poste is expected to play a leading role in setting the strategy for TIM, the sources said, asking not to be named.
Facing a series of corporate headaches, the government has decided to put on hold long-mooted plans to sell up to 14% of Poste, the sources added, missing out on up to 2.9 billion euros ($3.1 billion) in proceeds from a sale.
In an effort to rein in Italy's massive public debt through asset sales, the government last year approved measures allowing the Treasury to sell part of its 29.3% stake in Poste.
When including a 35% Poste stake held via CDP, the state would have retained more than 50% of Poste.
The share placement was supposed to be launched immediately after Poste's 2024 fourth-quarter results last month, which saw the group raise investor payouts and set better than forecast 2025 profit goals.
The decision to put on hold the sale also reflects widespread resistance across ruling and opposition parties as well as trade unions to a loosening of the state's grip on Poste, the sources said. Its 119,000 employees make Poste one of Italy's biggest employers.
TIM BOARD RESHUFFLE?
Poste, which could look to raise its 9.8% stake in TIM in the next few months, wants at least one representative on the nine-strong TIM board and may also push for a reshuffle of the phone group's entire board, another two people separately said.
Both TIM and Poste declined to comment.
The former phone monopoly last year became the first telecom incumbent in a major European country to opt for a full separation of its fixed-line network, which it sold to a consortium led by U.S. fund KKR.
The grid sale was opposed by Vivendi, which is challenging the move in court and has signalled it is open to selling its TIM stake.
By postponing its annual general meeting (AGM) to June 24 from April 10, referencing changes in its shareholder base, TIM has given Poste time to ponder its next moves.
Poste runs a business that lends itself to commercial partnerships with TIM and it also offers phone services through its Poste Mobile arm.
($1 = 0.9310 euros)
(Editing by Keith Weir)