Poste Italiane launches €10.8bn takeover offer for Telecom Italia

23rd Mar 2026 09:34

(Sharecast News) - Shares in Poste Italiane tanked on Monday after the state-backed postal service group launched a €10.8bn takeover offer for part-owned Telecom Italia.

Poste, which is 64%-owned by the Italian government, wants to take full control of the country's primary telecommunications operator, and has launched a cash and shares bid for the 72.7% stake it doesn't already own.

It said the two entities were among the "largest and most important industrial companies" in the country, with combined revenues of €27bn and a workforce of over 150,000.

"The new group will represent the country's largest connected infrastructure platform, a true driver of innovation, a hub for infrastructure and technological security, and a strategic pillar of the national economy capable of generating value for all shareholders and contributing significantly to the growth of the industrial system's productivity, the country's international competitiveness and the ability to attract investment," Poste said in a statement.

Poste said it sees cross-selling and up-selling opportunities from the tie-up across the retail, enterprise and public administration sectors, as well as significant cost synergies. However, it expects one-off restructuring costs to realise synergies of €0.7bn before tax, meaning that the merger would not be accretive to earnings per share until next year.

Poste is offering Telecom Italia shareholders 16.7 cents in cash and 0.0218 shares for each share they own, valuing the company at 63.5 cents a share, a 9.01% premium to Friday's closing price. The Italian state would retain a majority shareholder position in the enlarged company with a stake of over 50%.

Telecom Italia shares gained 2.5% to 59 cents on Monday morning in Milan, while Poste dropped 9.2% to €19.49.