Italy is postponing the sale of Poste shares until 2025, sources say

ROME/MILAN (Reuters) – Italy will postpone until next year the sale of up to 14% of shares in postal service Poste Italiane, originally expected in early December, three people familiar with the matter told Reuters on Friday.

State-controlled Post said last month that market regulator Consob’s approval of its share offering document had been temporarily suspended until the government made decisions on the timing and terms of the sale.

One of the sources asked not to be named, saying there was no time left for the internship in 2024.

The Treasury Department and the Postal Service declined to comment.

When asked to clarify the government’s plans, Economy Minister Giancarlo Giorgetti said last month that Rome would resolve some “minor technical issues” related to the deal, without elaborating.

As part of its efforts to sell state assets to curb Italy’s massive public debt, the government passed a decree this year allowing the Finance Ministry to sell part of its 29.3 percent stake in the post office.

Rome intends to keep more than 50% of the post office in public hands, taking into account a 35% share held through state lender Cassa Depositi e Prestiti (CDP).

Poste is valued at more than 17 billion euros ($17.98 billion) at current market prices, meaning the planned share sale is expected to reduce Italy’s debt by 2.4 billion euros.

Prime Minister Giorgia Meloni’s government postponed the offer for months after government and opposition parties and unions opposed plans to loosen state grip on key public services.

The state had originally planned to reduce its share to up to 35%.

Facing criticism from the opposition in parliament, Meloni promised to focus the public offer on domestic savers and exclude the participation of large asset managers.

Since November last year, Rome has already made more than 4 billion euros from the sale of 52.5% of rescued lender Monte dei Paschi di Siena (MPS) and a 2.8% stake in energy group Eni.

Despite the asset sales, the Finance Ministry expects Italy’s public debt to rise from 134.8% in 2023 to almost 138% of gross domestic product in 2026, before falling slightly from 2027.

($1 = 0.9456 euros)

(Reporting by Giuseppe Fonte, Elvira Pollina and Elisa Anzolin; Editing by Susan Fenton)

By Giuseppe Fonte, Elvira Pollina and Elisa Anzolin