Poste Italiane Bids 12.5 Billion Dollars for Telecom Italia
Poste Italiane has launched a 12.5 billion dollar bid to acquire Telecom Italia and take the firm private. The offer represents a nine percent market premium.
The majority-state-owned national postal service of Italy, POSTE ITALIANE SPA, has announced a cash-and-share offer to acquire the former telephone monopoly Telecom Italia (TIM) for 10.8 billion euros ($12.5 billion). The bid, revealed on Sunday, aims to take the telecommunications giant private and consolidate its infrastructure within the postal group's operations.
Poste Italiane, which already stands as TIM's largest shareholder, is offering 0.167 euros in cash along with 0.0218 newly issued Poste shares for each TIM share. This proposal values TIM shares at 0.635 euros each, representing a 9.01% premium over the closing price from the previous Friday. The acquisition is intended to provide the group with a comprehensive mobile and fixed-line network, as well as a leading position in cloud and data center infrastructure.
