Telecom Italia CEO Pietro Labriola supports Poste Italiane SpA’s €10.8 billion ($12.5 billion) bid to take full control of the company. He said that consolidation is necessary to strengthen Europe’s telecom sector. Labriola said the deal reflects broader industry shifts where scale, speed, and financial capacity are becoming central to digital businesses.
In an interview with Bloomberg, Labriola said, “Today, the digital business is all about scale. You need to move fast and have strong financial backing.” He added that Europe’s telecom operators need consolidation as market boundaries continue to blur, enabling companies to invest in areas such as cloud, IT, and content.
The proposed deal would return Telecom Italia to government control after nearly three decades of privatisation and could lead to its delisting.
Labriola said the offer should be evaluated by investors and described Poste as a potential industrial partner with opportunities for cost efficiencies, retail integration, and expansion of digital infrastructure.
“Small is not necessarily nice,” he said, noting that a combined Poste-Telecom Italia could still pursue cross-border mergers.
“It will be for the market to make the decision about the fairness” of Poste’s offer, he said.
“We are at the beginning of a process,”
Labriola added.
Why Telecom Italia CEO thinks Poste Italiane bid will help the company
Under Labriola, Telecom Italia has reduced debt, divested its fixed-line network and reported improved financial performance. Poste Italiane now plans to integrate this streamlined business into a broader domestic platform, using its retail network to distribute Telecom Italia’s telecom services.
Poste, which is majority-owned by the Italian government, operates across banking, insurance, and mobile services through PosteMobile. The Italian government is also the largest shareholder in Telecom Italia.
The proposed deal aligns with Italian Prime Minister Giorgia Meloni’s policy direction to increase oversight of strategic infrastructure. The government has identified the telecom sector as a strategic sector and has supported the restructuring of Telecom Italia as part of a wider industrial policy.
“Boundaries between sectors are collapsing — content, cloud, and connectivity are all converging within the digital ecosystem. The key is to define the role you want to play in this environment,” Labriola said.
The combined entity is expected to generate around €26.9 billion in annual revenue and could realise about €700 million in annual savings from cost reductions and cross-selling opportunities.
When asked about his role after a potential merger, aLabriola said it was “not important,” adding that the focus should remain on maximising shareholder returns.
