Italy sets terms for RaiWay stake sale, TV towers tie-up

Italy has approved a decree enabling state brodcaster RAI to sell a stake in its tower unit RaiWay RWAY, as long as the disposal is compatible with a tie-up of RaiWay with rival EI Towers, a government source told Reuters.

Explored for years, a combination between RaiWay and EI Towers would create a national broadcasting towers champion worth more than 2 billion euros ($2 billion).

The decree confirms an existing obligation for RAI, which currently owns 65% of Milan-listed RaiWay, to keep a stake of at least 30% in its tower business, a copy of the document seen by Reuters showed.

Shares in RaiWay extended gains after Reuters reported news of the decree, rising 1.6% by 0753 GMT.

RAI in January said it planned to raise cash to finance its new business plan by selling a 15% stake in RaiWay.

EI Towers is 60% owned by Italian infrastructure fund F2i.

Italy's top commercial broadcaster MFE-MediaForEurope MFEA, which is controlled by the family of late media tycoon and political leader Silvio Berlusconi, holds the remaining 40%. ($1 = 0.9244 euros)