Italian Post launches €10.8 billion offer to privatize Telecom Italia

Italian Post intends to pay Telecom Italia shareholders a cash amount of 0.167 euros per share, and issue new Italian Post shares at a swap ratio of 1:0.0218. Based on this calculation, Telecom Italia is valued at approximately 0.635 euros per share, representing a 9% premium over its closing price. The merged group's annual revenue will reach about 26.9 billions euros, with simulated EBIT (Earnings Before Interest and Taxes) of approximately 4.8 billions euros, and a total workforce exceeding 150,000 employees. Italian Post expects that, after full integration, about 700 millions euros of pre-tax synergies can be generated annually.