Telecom Italia shares climb as Poste sweetens takeover offer

Telecom Italia shares advanced more than 2% on Tuesday, after Poste Italiane late Monday increased the payout of its tender offer for the telecom operator by adding €0.30 per share in cash.

Poste's board revised the offer to 0.218 newly issued Poste shares plus €1.97 in cash for each Telecom Italia share tendered, up from the previous €1.67 in cash, saying the move was meant to affirm the strategic and industrial importance of the transaction.

Based on Poste's official share price on March 20, 2026, the increased consideration implies a value of €6.65 per Telecom Italia share, a 14.16% premium over Telecom Italia's share price that day. Using Poste's official closing price on September 4, the improved offer implies €7.83 per Telecom Italia share.

Poste said the enhanced consideration is final and it will not increase the offer any further.

It is also waiving the minimum acceptance threshold condition, meaning it will buy all tendered shares even if acceptances fall below 66.67% of Telecom Italia's voting rights. As a result, the offer will reopen from September 21 to September 25, 2026.

If all outstanding shares subject to the offer are tendered, the total implied value of the deal would be €11.35 billion, including the added cash component, with a maximum cash payout of €3.36 billion, according to the company.

Poste said it has arranged financing of up to €512 million with BNP Paribas and Mediobanca to help meet its payment obligations, and has obtained a guarantee from BNP Paribas covering the maximum cash payout.

Poste confirmed that the higher offer's impact on its earnings per share remains positive starting in 2027, with a double-digit positive impact anticipated in 2028. It also confirmed projected pro-forma leverage of 1.5 times by the end of 2026, reaffirmed its 2026 dividend policy on a stand-alone basis, and said it expects a progressive dividend policy from 2027 onward.

Telecom Italia shareholders who tender their shares will receive Poste's 2026 dividend accrual, which is payable on November 25.

Poste said shareholders who already tendered under the previous acceptance form do not need to take any further action and will automatically receive the increased consideration if the offer is completed.

The acceptance period for the offer is set to end at 17:30 CET on Friday, September 11, 2026.