Mediaset chairman says co is natural partner for Telecom Italia UPDATE

Mediaset chairman says co is natural partner for Telecom Italia UPDATE

	Published : Thu, 19 Apr 2007 10:51 By : Agencies Print this Story

(Updating with Confalonieri remarks on evaluating business opportunities)

MILAN (Thomson Financial) - Mediaset SpA chairman Fedele Confalonieri said his group is a 'natural and authoritative interlocutor' for a tie-up with Telecom Italia SpA.

Speaking at Mediaset's annual general meeting, Confalonieri said the fact that Mediaset is Italian-owned 'increases its (strategic) value' and becomes a 'natural and authoritative interlocutor for all those whose have the safeguard of Italian interests at heart.'

Confalonieri said in the future Mediaset intends to be a key player in all segments of the communications sector.

He added, however, that the group's core business will remain commercial free-to-air TV.

'It remains our intention -- as industrial player and not financial raider -- to evaluate every business opportunity,' Confalonieri said.

There have been newspaper reports saying Mediaset could be interested in joining a consortium of investors to buy a controlling stake in Telecom Italia from Pirelli & C SpA.

Pirelli is currently in talks to sell a stake in the holding company Olimpia, which owns 18 pct of Telecom Italia, to the Mexican companies America Movil and Telefonos de Mexico.

Confalonieri said the communications bill currently being studied in parliament, which will cap advertising revenues, damages 'Mediaset's interests only.'

He added that the bill runs against all Italian and European antitrust logic and, in his opinion, is 'not practicable.'

Confalonieri said that it is no longer possible for a government to introduce laws to regulate and set hard and fast rules for a sector which is rapidly changing.

He said the regulators are crucial for this purpose.

stephen.jewkes@thomson.com

pw/jms/pw/jag/tfn-mil-sj/amb

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.