Telecom Italia Shares Gain as Poste Italiane Sweetens Takeover Offer
Telecom Italia (TIT.MI) shares gained on Tuesday morning after postal services company Poste Italiane (PST.MI) raised its offer for the telecommunications operator to 11.35 billion euros and waived the threshold condition.Poste Italiane said late Monday it raised the cash component of the offer to 1.97 euros per share from 1.67 euros per share, while maintaining the exchange ratio for the stock component at 0.218 newly issued Poste ordinary share for every tendered Telecom Italia share. The postal company will offer a maximum aggregate cash component of 3.36 billion euros.The condition requiring Poste Italiane to secure at least 66.67% of Telecom Italia's outstanding shares was also waived.Poste Italiane's board said the consideration was raised to "confirm the strategic and industrial relevance of the offer," adding that it will no longer increase its bid further. The offer period reopens on Sept. 21 and will run through Sept. 25.Shares in Telecom Italia were up more than 2%, while Poste Italiane's shares edged higher during early trading in Milan.Earlier this year, the Italian state-controlled Poste Italiane launched a takeover offer for Telecom Italia after amassing a 20.1% stake in the telecom services provider. Telecom Italia's board in July unanimously approved Poste Italiane's offer.
