Telecom Italia’s board has formally endorsed a €10.8bn takeover bid from Poste Italiane, the state-controlled postal and financial services group, according to sources close to the matter. The decision, reached after a series of board meetings this week, paves the way for a shareholder vote that could fundamentally alter the ownership structure of Italy’s largest telecoms operator.
Under the terms of the proposed deal, Poste Italiane would acquire a controlling stake in Telecom Italia, valuing the company at approximately €10.8bn including net debt. The offer includes a modest premium to Telecom Italia’s recent share price, reflecting the strategic value Poste sees in combining its extensive physical and digital network with Telecom Italia’s fixed-line and mobile infrastructure.
The move comes as Telecom Italia continues to grapple with intense competition in the Italian telecoms market and a heavy debt burden. Poste Italiane, which already owns a minority stake in the company, has long been seen as a natural consolidator, given its own ambitions to expand into digital services and broadband. Analysts suggest the deal would create a vertically integrated player capable of challenging larger rivals such as Vodafone and Fastweb.
For UK investors holding Telecom Italia shares or bonds through pension funds or index trackers, the bid represents a potential exit at a premium, though the outcome remains uncertain. The FTSE 100 was largely unmoved by the news on Friday, closing at 8,214.50, down 0.2 per cent, as broader concerns about European economic growth weighed on sentiment. Telecom Italia’s Milan-listed shares rose 3.1 per cent in afternoon trading on the news.
“This is a transformative moment for Telecom Italia, but the devil will be in the detail, particularly around regulatory approvals and the valuation of the group’s network assets,” said Sarah Mitchell, a telecoms analyst at London-based research firm Cavendish Partners. “For UK institutional investors with exposure to Italian equities, the key question is whether Poste can deliver the promised synergies without saddling the combined entity with too much debt.”
The deal still requires approval from Telecom Italia’s shareholders, as well as clearance from Italian competition and communications regulators. A vote is expected within the next two months, with a decision likely before the end of 2026. If completed, the takeover would mark one of the largest European telecoms mergers in recent years.