Berlusconi’s MFE Signals Interest in Doing Deals In Spain

MFE-MediaForEurope NV, the television group controlled by Italy’s Berlusconi family, could explore possible deals to grow in Spain, including the purchase of the country’s largest radio broadcaster if it comes up for sale.

(Bloomberg) — MFE-MediaForEurope NV, the television group controlled by Italy’s Berlusconi family, could explore possible deals to grow in Spain, including the purchase of the country’s largest radio broadcaster if it comes up for sale.

“MFE is evaluating any possible deal in Spain that could help the company build an integrated media system made up of television, internet and radio assets,” Chief Executive Officer Pier Silvio Berlusconi said in a press conference at the company’s headquarters earlier this week. “If Prisa decides to sell its radio unit, we would evaluate it,” he said, in reference to Spanish media company Promotora de Informaciones SA.

The comments come on the back of media reports that MFE and Prisa, as the Spanish firm is known, have been in touch over a possible deal for the Italian group to acquire the Cadena Ser radio station. MFE already owns Telecinco, one of Spain’s two national free-to-air television broadcasters.

Prisa has been looking at ways to cut costs and sell assets to reduce its debt load for several years. 

The company also owns El Pais, Spain’s largest newspaper, and Santillana, the biggest Spanish-language publisher of school textbooks. The firm’s biggest shareholder is Amber Capital and its Chairman is Joseph Oughourlian, the founder and chief executive officer of the investment firm. 

Earlier this year, Prisa held a rights issuance as part of its latest refinancing move. Although Amber owns close to 30% of the company, it also has several shareholders with stakes above 5%, including Vivendi SA and Mexican billionaire Carlos Slim.

A spokesperson for Prisa declined to comment.

Any potential deal to acquire Prisa’s radio could have big political ramifications in Spain, which holds national elections on July 23. 

Prisa has traditionally been close to the Socialist party, which is currently in government. Opinion polls show the conservative People’s Party is the favorite to win the vote.

Pier Silvio Berlusconi is the eldest son of Mediaset founder Silvio Berlusconi, who died last month. The older Berlusconi’s will left Pier Silvio and his sister Marina in control of family’s business empire by granting significant stakes in Fininvest SpA, the family holding group.

(Updates with Prisa shareholders in sixth paragraph)

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