CashNews.co
By Giuseppe Fonte
ROME (Reuters) – Italy has held off approval of a decree to sell a stake in Poste Italiane, people familiar with the matter told Reuters, following resistance from ruling and opposition parties to loosen the state’s grip on key public services.
As part of its drive to sell state assets to rein in Italy’s massive public debt, the government approved a decree in January allowing the Treasury to sell all or part of its 29.3 stake in the postal service, while retaining control through another 35% stake held by state lender Cassa Depositi e Prestiti (CDP).
However, following widespread criticism for selling part of a strategic company, the Treasury told union representatives in May it would review the decree to place a smaller 13% stake, keeping 51% in state hands.
The three sources, who requested anonymity due to the sensitivity of the matter, said on Tuesday that approval of the revised decree was not on the government agenda, without providing further details.
The scheme was initially expected to be adopted in June, according to what Treasury representatives told the unions.
Rome would pocket around 2 billion euros ($2.2 billion) from the sale of roughly 13% of Poste, which is worth 16 billion euros.
Critics argue that debt interest savings stemming from the sale would be lower than the dividends paid by Poste over time.
The group – a major employer in Italy with more than 120,000 workers – plans to pay out 6.5 billion euros in dividends between 2024 and 2028, up from the 3.8 billion euros it distributed over the previous five years.
Italy raised more than 3 billion euros in 2015 when it sold 35% of Poste in an initial public offering that valued the group at 8.8 billion euros.
Rome had considered a further stake sale in 2016 under the centre-left government of Prime Minister Matteo Renzi, but decided against it due to concerns that higher private ownership of the group would put pressure on Poste to boost profitability and cut the post office network.
One of the sources said Rome was focused on plans to cut further its roughly 27% stake in bailed-out lender Banca Monte dei Paschi di Siena (MPS) and re-privatise the world’s oldest bank, after a failed first attempt in 2021.
People close to the privatisation process have previously said the Treasury needs to cede control of MPS by the end of this year to meet re-privatisation terms agreed with the European Union at the time of the 2017 bailout.
($1 = 0.9175 euros)
(Editing by Emelia Sithole-Matarise)