In a move mirroring actions by other countries, including Germany and the UK, Italy is planning to sell off its national post office system, Poste Italiane. The goal is to turn an asset into €3.4 billion (about $3.75 billion) in cash to pay down Italy's €2 trillion public debt.
Documents are already circulating for the stock offering in the 153-year-old operation, which also operates a profitable postal savings bank operation. The initial sale will take place soon, on the Milan stock exchange, with an offering price of €6.75 per share for about 35% of the stock in the company. The state will hold the other 65% for now, but may sell more later.
In preparation for the privatization, and to make the operation more attractive to investors, some 300 'less profitable' post offices around the country have been closed. At the same time, some workers were offered early retirement, while several thousand more are being hired for different positions.
The government of Prime Minister Matteo Renzi hopes to sell off parts of other public operations as well, with the goal of raising about €12 billion in cash. Soon to be on the block are parts of the state aviation group, Enav, and Ferrovie dello Stato, the agency that manages infrastructure (tracks, stations, etc.) on Italy's rail system. One of its subsidiaries, Trenitalia, is the principal train operator on those facilities.
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