Italy's De Agostini acquires controlling stake in Magnolia TV firm UPDATE

Italy's De Agostini acquires controlling stake in Magnolia TV firm UPDATE

	Published : Wed, 10 Jan 2007 13:27 By : Agencies Print this Story

(Updating with further comments on liquidity, Endemol, telecoms)

MILAN (AFX) - Italy's De Agostini SpA said it has signed a contract to buy a 53.5 pct stake in television content producer Magnolia SpA.

The remaining 46.5 pct of the company will remain in the hands of Magnolia's present owners, who are mainly key managers in the company, it said.

Giorgio Gori, who will remain at the company as chief executive, will retain about 25 pct of Magnolia, it said.

Lorenzo Pellicioli, CEO of De Agostini, will be chairman of Magnolia.

De Agostini and the other shareholder managers of Magnolia have agreed to a four-year business plan, which foresees the listing on the bourse of the company in the medium term.

The media and finance company said the acquisition of a controlling stake in Magnolia is an important move in the international development of its strategy in the media and communications sector.

De Agostini owns 40 pct of Spanish TV channel Antena 3 de Television SA.

'With this acquisition, De Agostini will strengthen its position in Italy and abroad in the key media sector,' said Pellicioli.

Pellicioli said he sees significant synergies between Magnolia and the gaming world. De Agostini controls Lottomatica SpA.

In 2006, Magnolia reported sales of about 67 mln eur, De Agostini said.

In further comments, Pellicioli said after its recent acquisition of a 2 pct stake in Assicurazioni Generali SpA, De Agostini has 600-700 mln eur in liquidity.

De Agostini does not exclude an interest in Telefonica SA TV content unit Endemol, he said, but added that the company is expensive.

'I can't say we are not interested in Endemol but I can't say that we are either,' he said.

Pellicioli said De Agostini is not interested in taking a stake in Telecom Italia SpA or in Fastweb SpA.

nigel.tutt@afxnews.com

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