Poste Italiane's €10.8bn bid for Telecom Italia encounters resistance as the offer represents just a 9% premium, already eroded by Poste's declining share price. Telecom Italia shareholders would see only an 11% value increase despite promised €500mn cost cuts and €3.5bn in synergies.

The deal appears driven by national champion ambitions rather than shareholder value. With Poste owning 20% of Telecom Italia and the Italian government controlling Poste, a counterbid seems unlikely. Poste's stock fell 7% when announced, wiping more than €1bn off its market value.

Market reaction suggests investors view the combination as value-destructive, as the combined companies now worth less than before the bid. For Prime Minister Giorgia Meloni, creating a digital sovereignty champion may justify shareholder dissatisfaction, but such interventions raise companies' cost of capital.