Italy is advocating for a domestic alternative to international investors, such as CVC Capital Partners and France’s Iliad, who are interested in Telecom Italia. Prime Minister Giorgia Meloni is supporting a stake swap that would enable Poste Italiane to acquire a 9.8% stake in Telecom Italia from the state lender Cassa Depositi e Prestiti (CDP). In exchange, CDP would receive Poste’s 3.8% stake in payments company Nexi, with a cash adjustment also required. Poste’s board is set to review the proposal on Saturday, with an announcement expected the same day. Following the report, Telecom Italia shares dropped by as much as 7.7% in Milan. This government-backed initiative could position Poste, which has diversified into financial and logistics services, as a safeguard against increased foreign influence in Italy’s telecommunications sector. Telecom Italia has recently become a potential target after reducing its debt through the sale of its landline network. Edoardo Liuni, head of trading at Trading Room Roma, noted that “regulatory and political pressure” might drive the partnership with Poste, although he suggested it may be less appealing than Iliad from an industrial and client synergy perspective. Earlier this week, Meloni’s government rejected an offer from CVC to acquire a stake in Telecom Italia held by Vivendi, the carrier’s largest shareholder. This acquisition could have facilitated a merger with Iliad.
Since taking office, Meloni’s right-wing administration has closely monitored companies deemed “national champions,” implementing measures to prevent foreign acquisitions of Italian assets, including mobilizing local investors and utilizing the “golden power” provision to block strategic asset takeovers. The government views Poste as a suitable partner for Telecom Italia, as it already operates the largest mobile virtual network in the country, leveraging Vodafone’s infrastructure. As a preliminary step toward the stake swap, Poste is expected to transition to Telecom Italia as its network provider. Meloni was instrumental in the spinoff and sale of Telecom Italia’s landline network to KKR, allowing the state to maintain a stake in the new entity. She has also played a significant role in the recent consolidation of Italy’s banking sector.
