Telecom Italia's (TIM) board of directors has approved Poste Italiane's proposed takeover of the telecoms giant.

The carrier noted over the weekend that the company's board had deemed the offer put forward by Italy's state-controlled postal service, Poste Italiane, as fair.

If the offer is accepted by shareholders, a takeover could value Telecom Italia at €13 billion ($14.8bn) based on Poste's closing share price last week, up from the initial €10.8bn ($12.3bn) offer that was submitted in March.

TIM's board has voted in favor of Poste's offer of €1.67 in cash and 0.218 newly issued Poste ordinary shares for each Telecom Italia ordinary share.

Poste acquired a nine percent stake in the company in 2025 from Italy’s state-backed investor Cassa Depositi e Prestiti, before increasing its shareholding through two stock purchases from French conglomerate Vivendi. Vivendi was previously TIM's largest shareholder; however, the company publicly disagreed with the sale of NetCo.

TIM previously sold its fixed network spin-off NetCo to investment firm KKR in a deal worth €22bn ($25.6bn) back in 2024. That sale covered Telecom Italia's landline grid network.

The deal will see TIM fall back into state ownership once again after the telco became privatized in 1997.