Berlusconi's Holding Sells 5.6% Stake in Mediolanum

By Giovanni Legorano

MILAN--Fininvest, the holding company controlled by the family of former Italian prime minister Silvio Berlusconi, sold a 5.61% stake in insurer Mediolanum SpA (MED.MI), the bookrunner of the transaction UniCredit Spa (UCG.MI) said Wednesday.

The bank--which acted in cooperation with Kepler Cheuvreux--said Fininvest made a net profit of around EUR253 million ($348 million) on the sale. It sold 41,300,000 ordinary shares of Mediolanum at EUR6.12 per share.

The offer was carried out through an accelerated bookbuilding process addressed to Italian and international institutional investors, UniCredit said. The transaction will be settled on Dec. 16.

At 1102 GMT, Mediolanum shares were down 4.8% at EUR6.11, while Mediaset SpA (MS.MI) shares were up 1.9% at EUR3.19. Fininvest controls Mediaset, Italy's largest private broadcaster, via a 41% stake. Before the sale, it owned 35.72% of Mediolanum.

Fininvest said it will use the liquidity obtained from this sale to reinforce its capital and financial position, after Italy's supreme court this summer ordered it to pay EUR494 million to holding company Cir in a long-standing legal case.

Write to Giovanni Legorano at [e-mail]

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