Poste Italiane Achieves 66.6% Stake in Telecom Italia Following Takeover Bid
Poste Italiane's Takeover of Telecom Italia: Key Developments and Implications
Overview of the Takeover Bid
MILAN, Sept 14 (Reuters) - Poste Italiane CEO Matteo Del Fante said on Monday he expected his company to end with a "comfortably controlling stake" in Telecom Italia (TIM) after the reopening of its takeover bid later this month. In the main phase of the offer, which ended on September 11, Poste secured a 66.6% stake in the former national phone monopoly.
Current Stake and Control
• The stake secured so far puts Poste firmly in control of Italy's biggest telecoms operator, although the group would need to reach around 90% ownership to pursue a planned delisting of TIM.
Timeline for the Takeover Bid
• The Poste bid for TIM, which ended on Friday, will be reopened during September 21-25.
Financial Details and Market Reaction
Increased Offer and Investor Response
• Investors rushed to tender their stake in Poste, which had previously built a 20% stake in TIM, after the state-backed conglomerate increased the cash component of its offer by 18% to €1.97 per share last week, while confirming an exchange ratio of 0.218 newly issued Poste shares for each TIM share tendered, in a deal worth around €13 billion at current market prices.
CEO Commentary on Market Sentiment
• "There has been a realisation. The markets call it FOMO, or 'fear of missing out': the fear of being left behind as the Poste train pulled out of the station. As a result, everyone moved to tender their shares," Del Fante said in a statement. "We believe this FOMO effect will also be present from September 21 to September 25," he added.
Strategic Rationale and Future Plans
Poste's Broader Strategy
• Poste, which is two-thirds owned by the Italian state and operates mail, financial, energy, and broadband services, launched its bid earlier in March as part of a plan to create a national champion in digital infrastructure and services as European Union governments are keen for tighter control over assets that handle critical data on households and companies. Poste projected annual pre-tax benefits of €700 million from the deal.
Reporting Credits
(Reporting by Elvira Pollina, editing by Alvise Armellini)
