Telecom Italia's Tender Offer Off to a Slow Start as Operator Posts Quarterly Return to Profit
Published on 08/08/2026 at 04:22 | Redaktion boerse-global.de
The numbers landing in Poste Italiane's inbox so far suggest shareholders are in no hurry to commit. With just over a week of the offer period elapsed, tenders have arrived for 26,040,553 Telecom Italia shares — an acceptance rate of 1.526 percent. That modest figure, recorded through August 7, is hardly a cause for alarm given the roughly seven-week window that remains open, but it does set the stage for a September scramble.
Poste Italiane launched its voluntary public exchange and tender offer for all of Telecom Italia's ordinary shares on July 20, with the acceptance period running until September 11. Investors who acquire TIM shares on September 10 or 11 will find themselves locked out of the current offer — a deadline worth marking for anyone still weighing an entry. History suggests the real action tends to cluster in the final trading sessions, when institutional holders finalize their positions. The early reticence could reflect hopes of improved terms, or simply the preference of both retail and professional investors to keep their options open until the last possible moment.
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A Return to Black Ink
The tender process is unfolding against a backdrop of improving fundamentals. Telecom Italia published its audited half-year report on Thursday, covering the period through June 30, 2026, and the document confirms the second-quarter figures released in late July. Group revenue reached 3.5 billion euros in Q2, up 5.7 percent year-on-year, while net profit came in at 88 million euros — a sharp recovery from the 292 million euro net loss recorded in the first quarter. EBITDA-AL advanced 4.5 percent to 998 million euros.
The domestic market remains the weak spot. Italian revenues slipped 2.4 percent to 1.45 billion euros, a decline the company attributes to a shift in wholesale revenue distribution. Growth is coming from elsewhere: TIM Brasil expanded 5.5 percent and TIM Enterprise climbed 7.9 percent. Net debt after leasing rose to 7.3 billion euros as of June 30, an increase of 431 million euros since December 2025, driven by costs tied to the conversion of savings shares and investments in Brazil. Management reaffirmed its 2026/2027 financial guidance in late July, pointing to continued progress in the transformation toward a "TechCo" business model.
Board Backing and a Side of Buybacks
The offer, valued at over 13 billion euros, carries the unanimous endorsement of Telecom Italia's board, which recommended acceptance on July 18 after receiving fairness opinions from Evercore Partners and Goldman Sachs. In parallel, the company completed the first tranche of its share buyback program in July, hitting its target of 14 million repurchased shares — a signal that capital measures continue despite the ongoing takeover discussions.
The corporate calendar has also included a climate transition plan unveiled in early August, outlining strategies to reduce the environmental footprint of digital infrastructure, and a promotional offer for existing convergence customers: reduced monthly rates of 21.90 euros for FTTH and 12.90 euros for FWA connections at secondary residences, valid until August 29.
Market Mood Brightens
The share price is reflecting a cautiously optimistic tone. The stock closed Friday at 7.59 euros, down a marginal 0.17 percent on the day, but up 3.29 percent on the week. The monthly picture remains negative, with a 5.84 percent decline, though the recent firmness suggests sentiment around the takeover process has improved after a weaker July. The relative strength index of 64.7 points to noticeable but not overheated demand. Market capitalization stands at 16.11 billion euros.
For shareholders, the key question in the weeks ahead is whether the pace of tenders accelerates meaningfully as the September 11 deadline approaches. The current 1.526 percent participation rate is no cause for concern at this early stage, but it will draw closer scrutiny if the flow of acceptances doesn't pick up. Until then, the share price remains the most direct barometer of market expectations for how this process will ultimately resolve.
