Finance
Italy's Poste Launches $12 Billion Cash-And-Share Bid to Buy Telecom Italia
Published by Global Banking & Finance Review®
Posted on March 22, 2026
2 min readLast updated: March 22, 2026
Quick Summary
Poste Italiane, Italy’s majority-state postal service, unveiled a €10.8 billion ($12.5 billion) cash-and-share takeover bid for Telecom Italia (TIM), offering €0.167 plus 0.0218 Poste shares per TIM share—implying a valuation of €0.635, a 9.01% premium.
Italy's Poste launches $12.5 billion cash-and-share bid to buy Telecom Italia
Poste Italiane's Acquisition Offer and Strategic Implications
Overview of the Acquisition Bid
March 22 (Reuters) - Italian majority-state-owned national postal service Poste Italiane said on Sunday it was launching a cash-and-share offer to buy former phone monopoly Telecom Italia (TIM) for 10.8 billion euros ($12.5 billion).
Details of the Offer
Poste, which is already TIM's largest shareholder, said it would offer 0.167 euros in cash as well as 0.0218 newly issued Poste shares for each TIM share tendered - valuing TIM shares at 0.635 euros each, or a 9.01% premium to Friday's closing price.
Strategic Rationale and Benefits
Objectives of the Takeover
Poste said the takeover, aimed at taking TIM private, would provide the group with a mobile and fixed-line telecoms network, a leading position in cloud and data centre infrastructure and the ability to provide secure data handling for the state, in line with European Union efforts to protect the bloc's data sovereignty.
Financial Impact and Synergies
The combined group would have pro forma revenue of 27 billion euros and an operating profit of 5 billion euros with more than 150,000 employees, Poste said in a statement.
Poste said pre-tax benefits from the merger would total 700 million euros a year, of which 500 million euros would come from cost cuts, including lower financing costs.
Shareholding and Timeline
Poste, which owns just over 27% of TIM, said it expects to conclude the transaction by the end of the year, with cost savings materialising within two years and revenue benefits within three.
"Poste expects a positive impact on its earnings per share starting in 2027," the company said.
Additional Information
($1 = 0.8643 euros)
(Reporting by Angela Christy in Bengaluru and Valentina Za and Elvira Pollina in Milan; Editing by Peter Graff and Mark Porter)
Key Takeaways
- •The bid values TIM at €0.635 per share—a 9% premium over its closing price before the announcement.
- •Upon success, Poste would take TIM private, gaining a telecoms network and boosting its cloud and data capabilities.
- •The combined entity would generate pro forma revenues of €27 billion with €5 billion in operating profit, leveraging over 150,000 employees.
Frequently Asked Questions about Italy's Poste launches $12 billion cash-and-share bid to buy Telecom Italia
1How much is Poste Italiane offering to buy Telecom Italia?
Poste Italiane is offering 10.8 billion euros ($12.5 billion) in a cash and share deal to acquire Telecom Italia.
2What does Poste's offer to TIM shareholders include?
TIM shareholders are offered 0.167 euros in cash and 0.0218 newly issued Poste shares for each TIM share tendered.
3What is the main goal of Poste's takeover of Telecom Italia?
The takeover aims to take Telecom Italia private and create an industry leader in telecoms, cloud, and data centre infrastructure.
4What will be the pro forma revenue and profit of the combined group?
The combined group is expected to have 27 billion euros in revenue and 5 billion euros in operating profit.
5How many employees will the combined Poste and Telecom Italia group have?
The combined company will employ over 150,000 people.
