Shares in Italian broadcaster Mediaset have rebounded. The TV network’s controlling shareholder is Italy’s Prime Minister for the last five years, Silvio Berlusconi. Romano Prodi’s center-left opposition had pledged to loosen the company’s grip on the media market if Berlusconi lost the country’s parliamentary election.
When voting ended and exit polls showed Berlusconi’s center-right coalition trailing his opponents, Mediaset’s shares fell 2%. But when the Milan stock market closed, they were up 3.3%. The media tycoon’s control of Italy’s leading private television network had dominated debate during his time in power. The rebound in the share price indicated the feeling by investors that Berlusconi’s party could have done far worse and that the center-left did not appear to have a large enough majority to easily
pass laws that could hurt Mediaset.
Fears that a leftist government could make life difficult for the broadcaster have pushed down the value of its shares by around 25% in the last few weeks. Despite the fact that Mediaset is considered to be one of Europe’s strongest broadcasters, several analysts had advised holding off from buying the shares until election uncertainties were removed.