Poste Italiane (PST.MI) has expressed openness to discussions regarding a potential tie-up between Telecom Italia (TIM) (TLIT.MI) and French telecom company Iliad, according to sources familiar with the matter, according to Reuters.
This development comes as Poste cements its position as TIM’s largest shareholder, following its acquisition of an additional 15% stake from Vivendi (VIV.PA), increasing its total holding to 24.8%.
The state-controlled financial conglomerate, which operates across various sectors including energy, payments, and telecommunications, initially entered TIM’s shareholder base in February 2025 with a 9.8% stake, replacing state lender Cassa Depositi e Prestiti (CDP). In announcing its expanded investment, Poste Italiane reiterated its commitment to acting as a long-term industrial partner for TIM, fostering synergies between the companies and supporting the broader consolidation of Italy’s telecom sector.
Exploring Potential Synergies with Iliad
While no formal steps have been initiated, sources indicate that Poste is open to evaluating a possible collaboration between TIM and Iliad. Since its market entry six years ago, Iliad has intensified competition in Italy’s retail telecom sector, particularly in the mobile segment, driving aggressive price competition. Analysts suggest that the current market structure has led to thin profit margins, making it difficult for telecom operators to fund necessary investments.
Any potential tie-up between TIM and Iliad would reduce the number of mobile network operators in Italy from four to three, thereby necessitating regulatory approval from the Italian Competition Authority. Iliad, majority-owned by French billionaire Xavier Niel, has actively advocated for industry consolidation in Italy. In early 2025, the company approached the Italian government regarding TIM, but discussions were deferred as Poste’s investment in TIM took priority.
Poste Italiane’s Strategic Investment in TIM
As part of its acquisition agreement with Vivendi, Poste Italiane is set to pay €684 million for the additional TIM shares at a price of €0.2975 per share. The transaction, expected to be completed in the first half of 2025, will be financed through available cash. Poste Italiane has clarified that it does not intend to exceed the mandatory public tender offer threshold in its stake accumulation.
The acquisition will be subject to notification to the Italian Competition Authority, adhering to regulations governing corporate concentration controls. Poste Italiane views this investment as a strategic move to enhance collaboration between its services and TIM’s infrastructure. The company is particularly focused on integrating synergies across telecommunications, ICT services, media content, financial services, insurance, payments, and energy.
Future Collaborations and Market Implications
Poste Italiane has also confirmed that negotiations are at an advanced stage for Postepay S.p.A., its wholly owned financial subsidiary, to gain access to TIM’s mobile network infrastructure starting January 1, 2026. Further evaluations are underway regarding industrial partnerships that could leverage the combined strengths of the two firms across multiple sectors.
As Italy’s largest service infrastructure network, Poste Italiane plays a critical role in logistics, financial services, insurance, telecommunications, utilities, and digital services. With over 12,800 post offices, 119,000 employees, and total financial assets amounting to €590 billion, Poste remains deeply embedded in Italy’s socio-economic framework.
