Italy minister rules out talks with Mediaset over Rai Way bid

ROME (Reuters) - Italy's Economy Minister ruled out talking to Mediaset about any renewed bid for Rai Way, the transmission towers unit of state broadcaster Rai [RAI.UL], reiterating that the government intended to keep its majority stake. Mediaset, Italy's biggest private broadcaster, said last week it would seek to acquire control of Rai Way, which was listed last year as part of a privatization drive aimed at cutting the country's 2 trillion-euro public debt. However, the government has said that at least 51 percent of Rai Way would remain in public ownership due to its strategic importance and Pier Carlo Padoan told the Corriere della Sera daily on Sunday that there were no plans to relinquish control. "There is no discussion, no intention to have one and no approach by anyone for this," he told the newspaper. "A stake has been put on the market and that's where the choice will be made: there are various operators who could be interested in the stakes available." The issue has been politically sensitive because Mediaset is controlled by former premier Silvio Berlusconi, who has had an informal political cooperation pact with Prime Minister Matteo Renzi since last year. Critics and political opponents of both Renzi and Berlusconi had voiced suspicions that Mediaset may be allowed to gain control of Rai Way as the price for further political cooperation with the government, which has only a narrow majority in the Senate. Rai Way is currently two-thirds owned by the Italian Treasury through Rai but further shares are expected to come onto the market, although no timeframe has been given. Padoan said he was unaware of any plan for Rai Way to be integrated into a single unit with EI Towers, which is controlled by Mediaset, or Inwit, the wireless tower unit of Telecom Italia. EI Towers said last week it would launch a bid worth up to 1.2 billion euros ($1.34 billion) to take over Rai Way in a cash and shares deal aimed at creating a single major operator in the television and radio mast sector. (Reporting by James Mackenzie; editing by Clelia Oziel)