Purchases on Poste with double upgrade BofA, prospectus on Tim filed

(Il Sole 24 Ore Radiocor)- Purchases on Poste Italiane at Piazza Affari after the filing with Consob of the prospectus for the takeover bid on Telecom Italia .

The share price benefited in particular from the double promotion by analysts at BofA, who raised their recommendation to 'buy' from the previous 'underperform' in a report entitled 'A unique opportunity to score a goal'. The target price was raised to EUR 28.8 from the previous EUR 21.5, an increase of 35%. According to analysts, in particular, the acquisition of Tim 'has the potential to create significant value with a 25% increase in earnings per share by the end of 2029'. The increase in the target price, moreover, is the result of two different scenarios that have been given equal weight: in the first, without the deal on Tim, the estimated fair value is EUR 26 per share with an increase in earnings per share, while in the second, with the acquisition of 100% of Tim, the fair value is EUR 31.5, 'largely due to synergies and higher dividends'. As for the timing of the transaction, Intermonte notes that 'the filing of the document' of the offer 'marks a significant formal step in the execution of the transaction, confirming the timing and structure already communicated and effectively initiating the authorisation process'. From a strategic point of view, "the transaction remains consistent with Poste's objective to evolve towards an integrated platform combining distribution, financial services and digital infrastructure, with identified synergies and visibility on profit growth in the medium term". The company expects to close the deal by 2026.

In an interview with the Financial Times, CEO Matteo Del Fante also defended the deal against criticism from those who argue that it represents a step backwards towards state control of large companies, years after privatisation. "We have shown that we are a market company," he explained, noting that "the operation would increase the free float, as the state participation in the merged entity would drop from 65% to 50% and new shares would be issued to Tim's investors". For Del Fante, 'in this sense, it is a step towards the market'. For Tim's shareholders, he concluded, 'the point is not only the value we offer immediately, but also the opportunity to benefit from future synergies and a more solid growth trajectory under Poste's leadership'.