By Elvira Pollina MILAN, March 28 (Reuters) - Poste Italiane has asked the board of Telecom Italia (TIM) for a meeting where Chief Executive Matteo Del Fante could present the postal services group's
Poste Italiane Bids €10.8 Billion for Telecom Italia, Requests Board Meeting
Poste Italiane's Bid and Its Implications for Telecom Italia
By Elvira Pollina
Overview of the Bid
MILAN, March 28 (Reuters) - Poste Italiane has asked the board of Telecom Italia (TIM) for a meeting where Chief Executive Matteo Del Fante could present the postal services group's 10.8 billion euro ($12 billion) cash-and-share bid for the former phone monopoly, two sources close to the matter said on Saturday.
State-backed conglomerate Poste last Sunday unveiled a bid to take TIM private and create a national digital champion, strengthening state control of assets that handle critical household and corporate data.
The offer had not been previously agreed with TIM.
Request for Board Meeting
The sources said Del Fante sent a letter to TIM's directors this week asking for an opportunity to illustrate the offer to the board.
Strategic Rationale and Potential Benefits
Poste's Expansion in Digital Services
Poste, which offers logistics, financial, payments, broadband and insurance services, has forecast 700 million euros in yearly benefits to earnings from the combination.
The deal would give Poste control of TIM's data‑centre network and its cybersecurity unit Telsy, expanding Poste's role in digital services directed at consumers, large companies, and government bodies.
Next Steps and Board Considerations
TIM Board's Upcoming Decisions
TIM's directors will discuss Del Fante's request at a previously scheduled meeting on Sunday, the sources said, adding that the bid's presentation was then expected to take place in the coming weeks.
Poste and TIM declined to comment.
Selection of Advisers
On Sunday, TIM's directors are also expected to pick advisers to help with the assessment of Poste's bid.
Other Board Matters
The TIM board is also expected decide the early termination of a long-term contract with tower company Inwit, mirroring a similar move by Swisscom's Fastweb, the sources said.
Poste's Stake in TIM
Poste is TIM's leading investor with 27% of its ordinary share capital, a stake that will fall close to 20% after TIM converts some special shares it has outstanding into ordinary stock in May.
($1 = 0.8690 euros)
(Editing by Valentina Za)
