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(Bloomberg) -- Italy’s state-run postal service is planning to raise its stake in Telecom Italia SpA to nearly 25% in a bid to become the phone carrier’s largest investor, replacing French conglomerate Vivendi SE, according to people familiar with the matter.
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Poste Italiane SpA, which currently owns about 10% of Telecom Italia, aims to buy an additional holding of as much as 15% from Vivendi, the people said. Vivendi may retain a small stake in Telecom Italia after any deal, according to the people, who asked not to be identified as the matter is private.
Vivendi shares reversed earlier losses to gain 1.7% as of 1:57 p.m. in Paris.
The Poste plan would mesh with a government push to recreate a “national champion” in the telecommunications industry, the people said.
The potential deal could allow Poste to stay below a threshold that would trigger a mandatory takeover offer under Italian regulations. Shares of Telecom Italia have gained 28% in Milan trading this year, giving the company a market value of about €7 billion ($7.5 billion).
The move would give Poste, which has expanded into financial and logistics services, a role as a bulwark against further foreign control of Italy’s phone industry. Telecom Italia has recently emerged as a possible target as it slashed debt following the sale of its landline network last year.
Deliberations are ongoing and details of the potential deal could change, the people said. Representatives for Poste, Telecom Italia and Vivendi declined to comment. Italian media outlets including la Repubblica and Il Sole 24 Ore reported earlier that Poste was considering lifting its stake in Telecom Italia.
Prime Minister Giorgia Meloni last month backed a stake swap that allowed Poste to take over a 9.8% holding in Telecom Italia from state lender Cassa Depositi e Prestiti SpA. The lender, known as CDP, in turn received Poste’s 3.8% stake in payments specialist Nexi SpA.
Since coming to power in 2022, Meloni’s right-wing government has kept a close eye on companies it considers “national champions.” That’s translated into moves to ward off foreign purchases of Italian assets, whether by rounding up local investors or resorting to the “golden power” provision which allows the state to block takeovers of strategic assets in some cases.