Poste Italiane in talks to buy part of Vivendi's TIM stake, sources say

MILAN (Reuters) - Poste Italiane is in talks with Vivendi to buy part of its stake in Telecom Italia (TIM), in a move which would make the state-backed conglomerate the leading investor in the former phone monopoly, three sources close to the matter said.

Last week, Vivendi cut its stake in TIM to 18.4% by selling a 5% holding in the former phone monopoly, in line with its earlier strategic decision to divest from the Italian telecoms operator.

Poste, which in February became TIM's second-largest investor with a 9.8% stake, is considering raising its stake further and taking the driving seat at TIM as Italy's telecoms market is seen ripe for consolidation, Reuters reported in February.

Poste is eyeing a stake of about 10% in TIM to add to its existing stake, said the sources who declined to be named given the sensitivity of the matter.

Poste would need to remain under the 25% threshold that triggers a mandatory buyout bid under existing rules in any stake purchase, meaning Poste could take at most another 15% of TIM's ordinary share capital.

The sources said talks are under way on the terms of a potential deal, with the aim of clinching an agreement before TIM's annual general meeting scheduled for the end of June.

Vivendi, which is looking to get a premium from the sale, could also opt to initially keep a residual single-digit stake, two of the people said.

Poste and Vivendi declined to comment.

Il Sole 24 Ore daily reported earlier on Friday, Poste and Vivendi were talking about a potential stake deal.

At current market prices, a stake of 10% in TIM is worth about 480 million euros.

Poste, whose business spans 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 as part of a plan backed by Italy's conservative government led by Giorgia Meloni.

Poste's further investment would come after TIM last year stabilised its finances by cutting debt through the sale of its landline grid to a consortium led by U.S. fund KKR under a government-backed plan.

Italy's Treasury Junior Minister Federico Freni said earlier this week Poste would be a suitable partner for TIM when asked if the state-backed financial conglomerate could replace France's Vivendi as TIM's single largest investor.

(Reporting by Elvira Pollina. Editing by Jane Merriman)