Story
Telecom Italia Shares Fall as Poste Italiane Fails to Secure Delisting Threshold
Summary
Poste Italiane concluded its tender offer with an 85.82% stake in Telecom Italia, falling short of the 90% ownership required to delist the company and sending its shares lower.
Shares in Telecom Italia (TIM) declined on Monday after Poste Italiane's tender offer closed with the group holding 85.82% of the company, missing the critical 90% threshold needed to force a delisting of the stock from the exchange.
Offer Results Finalized
Poste Italiane announced that the reopening period of its offer had concluded. According to provisional results cited by the source, the postal and financial services group will now hold a total of 1.833 billion TIM shares. This stake was accumulated through several stages:
- 430.4 million shares already owned by Poste Italiane prior to the offer.
- 993.6 million shares tendered during the initial acceptance period.
- 410.0 million shares tendered during the subsequent reopening period.
The total shares tendered throughout the offer represent approximately 65.718% of TIM’s share capital. Poste Italiane also stated it did not acquire any TIM shares outside of the formal offer process.
Offer Terms and Background
AdThe terms of the deal entitle each shareholder who tendered their stock to receive €1.97 in cash plus 0.218 newly issued Poste Italiane ordinary shares for each TIM share. The settlement for these transactions is scheduled for October 2.
In an effort to boost participation, Poste had amended its offer on September 7 by increasing the cash component by €0.30 per share. At the same time, it removed the minimum acceptance threshold, signaling its determination to increase its stake even if a full delisting was not achieved.
Market Implications
The failure to secure the 90% stake required for a “squeeze-out” means Telecom Italia will remain a publicly traded company. The drop in its share price reflects investor disappointment that the delisting will not proceed, effectively removing the takeover premium that had supported the stock.
While Poste Italiane is now the dominant shareholder, its inability to take the company private complicates its long-term strategic options for TIM. The market will now be focused on Poste's future plans as a majority owner of a publicly listed telecommunications firm.
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