Poste CEO sees bigger Telecom Italia stake after offer gets 66.6% support

• Poste Italiane, two-thirds owned by the Italian state, raised its cash offer by 18% to €1.97 per share, triggering investor 'fear of missing out' and driving strong tender participation
• The deal aims to create a national champion in digital infrastructure as EU governments seek tighter control over critical data infrastructure, with Poste projecting €700 million in annual pre-tax benefits
• While the 66.6% stake gives Poste firm control of Italy's largest telecoms operator, approximately 90% ownership is required to pursue the planned delisting of TIM

Summary: Poste Italiane Advances TIM Takeover with 66.6% Acceptance Rate

Key Development:

Poste Italiane CEO Matteo Del Fante announced the company secured a 66.6% stake in Telecom Italia (TIM) after the main phase of its takeover offer ended September 11, 2024. The CEO expects to achieve a "comfortably controlling stake" when the bid reopens September 21-25.

Financial Details:

• Poste increased its cash offer by 18% to €1.97 per share, driving strong investor participation
• The acquisition aims to generate €700 million in annual pre-tax benefits
• Poste previously held a 20% stake in TIM before launching the takeover bid
• Approximately 90% ownership would be required to pursue a planned delisting of TIM

Strategic Context:

The deal supports Italy's strategy to create a national champion in digital infrastructure and services. As a state-backed conglomerate (two-thirds owned by the Italian government), Poste operates mail, financial services, energy, and broadband businesses. The acquisition aligns with broader European Union objectives for governments to maintain tighter control over telecommunications operators handling critical household and corporate data.

Market Dynamics:

Del Fante cited "FOMO" (fear of missing out) as a driving factor behind the strong tender response, with investors rushing to participate before missing the opportunity. The 66.6% acceptance rate gives Poste firm control over Italy's largest telecommunications operator, though it falls short of the delisting threshold.

Next Steps:

The reopened offer period (September 21-25) provides remaining shareholders a final opportunity to tender their stakes, potentially pushing Poste's ownership stake higher.