Mediaset shares fall

May 15, 2001
Web posted at: 1045 GMT

LONDON (CNN) -- Shares in Silvio Berlusconi's broadcasting company Mediaset fell on expectations his big election win will lead him to keep the business.

Mediaset shares fell 3 percent on Tuesday to 11.79 in Milan after recently soaring 20 percent on the belief that Berlusconi would sell the 48 percent stake he and his family control to avoid claims of conflict of interest.

The Italian prime minister-in-waiting's company is the nation's largest commercial broadcaster in competition to state-owned network RAI.

Berlusconi's opponents say that as prime minister – with control of RAI and  Mediaset – his authority would extend over 95 percent of Italy's TV market.

Berlusconi and his centre-right alliance secured their sweeping general election victory on Tuesday, with confirmation of an absolute majority in both houses of parliament.

"Mediaset rallied on the idea that the election would be close and Berlusconi would need the support of his coalition partners," a Milan dealer told Reuters.

"Now he doesn't need the coalition so much he is less likely to come under pressure to sell the stake, so a blind trust is more likely," he said.

Putting Mediaset in a blind trust would mean Berlusconi kept the assets but had no control over management of the company until his term as prime minister ended.

Berlusconi has hinted at the possibility of forming a blind trust, although Mediaset Chairman Fedele Falconieri has dismissed this as unworkable in a company that needs active management.

Other analysts have speculated, however, that if Berlusconi is able to set his sights on a long stint in government, he will be more likely to sell Mediaset.

The company on Monday posted a 3.9 percent rise in first-quarter operating profit to 471.5 billion lire ($212 million). Overall revenues were slightly ahead of forecasts, rising 8.5 percent, to 1.3 trillion lire.

Murdoch drops Italian bid – March 20, 2001

 Mediaset

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