Published : 2 weeks ago, on 29/11/2024

By Giuseppe Fonte, Elvira Pollina and Elisa Anzolin

ROME/MILAN (Reuters) – Italy will postpone until next year the sale of up to a 14% stake in postal service Poste Italiane which was originally expected by early December, three people familiar with the matter told Reuters on Friday.

State-controlled Poste said last month the approval of its share offering document by market watchdog Consob had been temporarily suspended, pending decisions regarding the timing and conditions of the sale by the government.

Asking not to be named, one of the sources said there was no longer time to do the placement in 2024.

The Treasury and Poste both declined to comment.

When asked to clarify government plans, Economy Minister Giancarlo Giorgetti said last month Rome would put right some “minor technical issues” regarding the transaction, without elaborating.

As part of its drive to sell state assets to rein in Italy’s massive public debt, the government this year approved a decree allowing the Treasury to sell part of its 29.3% stake in the postal service.

Rome intends to keep more than 50% of Poste in public hands when factoring in also a 35% stake held through state lender Cassa Depositi e Prestiti (CDP).

Poste is valued at more than 17 billion euros ($17.98 billion) at current market prices, meaning that the proposed share sale is expected to cut Italy’s debt by 2.4 billion euros.

Prime Minister Giorgia Meloni’s government has delayed the offering for months, following resistance from ruling and opposition parties as well as trade unions to planned loosening of the state’s grip on key public services.

Initially the state had planned to reduce its stake to as low as 35%.

Facing criticism from the opposition in parliament, Meloni pledged to focus on domestic savers in the public offering, ruling out the involvement of large asset managers.

Since November last year, Rome has already earned more than 4 billion euros by selling 52.5% of bailed-out lender Monte dei Paschi di Siena (MPS) and a 2.8% stake in energy group Eni.

Despite the asset disposals, the Treasury sees Italy’s public debt rising to almost 138% of gross domestic product in 2026 from 134.8% in 2023, before marginally declining from 2027.

($1 = 0.9456 euros)

(Reporting by Giuseppe Fonte, Elvira Pollina and Elisa Anzolin; Editing by Susan Fenton)