Italy Delays Poste Italiane Stake Sale Amid Political Resistance

Italy has postponed the approval of a decree to sell a stake in Poste Italiane due to opposition from both ruling and opposition parties. The sale was part of efforts to reduce public debt, but faced criticism for selling a strategic asset. The government is now considering a smaller stake sale.

Italy has delayed the approval of a decree to sell a portion of its stake in Poste Italiane, sources familiar with the situation disclosed to Reuters. This follows resistance from both ruling and opposition parties against reducing state control over key public services.

The government had approved a decree in January as part of its initiative to sell state assets and manage Italy's significant public debt. The decree would have allowed 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). Yet, after receiving widespread criticism for potentially selling part of a strategic company, the Treasury informed union representatives in May it would review the decree to sell a smaller 13% stake, maintaining 51% state control.

Three anonymous sources stated that the revised decree's approval was not on the government's agenda as of Tuesday. The sale initially expected to be adopted in June would generate around 2 billion euros from a 13% stake of Poste, worth 16 billion euros. Critics argue that the debt interest savings from the sale would be less than the dividends Poste pays. Poste Italiane plans to disburse 6.5 billion euros in dividends between 2024 and 2028, an increase from 3.8 billion euros in the previous five years. Italy had raised more than 3 billion euros in 2015 by selling 35% of Poste in an IPO, which valued the group at 8.8 billion euros.

(With inputs from agencies.)