Poste Italiane Poised to Increase TIM Stake Amid Vivendi Exit
By Giancarlo Navach and Elvira Pollina
MILAN (Reuters) -Poste Italiane is a suitable partner for Telecom Italia (TIM), a Treasury official said on Tuesday when asked if the state-backed financial conglomerate could replace France's Vivendi as TIM's single largest investor.
Vivendi last week cut its stake in the Italian telecoms operator to 18.4% from 23.8%, after saying last year the holding is no longer strategic.
"Poste has all the right credentials to be a financial and industrial partner for TIM," junior Treasury minister Federico Freni told reporters in Milan.
"Vivendi was only ever a financial partner," Freni added. "Italy can grow only when combinations involve partners which are not just financial but also industrial."
Reuters first reported that Poste was considering raising its 9.8% TIM stake further and taking the driving seat at TIM as Italy's telecoms market is seen ripe for consolidation.
Poste, whose business spans from the traditional mail and parcel delivery to energy, insurance and phone services, became a TIM investor in February when it acquired the holding from Italian state lender CDP.
Given Vivendi's plans to liquidate its TIM investment, buying part of its stake is a natural option for Poste to consider, two people close to the matter told Reuters.
Poste would need to remain under the 25% threshold that triggers a mandatory buyout bid under existing rules, one of the sources added, meaning Poste could take at most another 15% of TIM's ordinary share capital.
In announcing its investment in TIM, Poste said the operation was aimed at "creating synergies between the companies and favouring, with all the players involved, the consolidation of the telecommunications market in Italy".
TIM's main competitors in its domestic market are France's Iliad, Swisscom and Wind Tre.
Iliad, which has been pushing for consolidation in the Italian sector, had approached the Rome government about TIM, but Italy put any thoughts about a potential combination on hold, as Poste's investment took precedence.
By increasing its holding in TIM, Poste would be able to ensure a significant state-sector presence in TIM's capital even after any tie-ups.
On Tuesday, Iliad CEO Thomas Reynaud said "consolidation (in Italy) is an opportunity but not mandatory."
(Editing by Keith Weir and Susan Fenton)
