By Eric Sylvers
Milan--RCS MediaGroup SpA (RCS.MI), said Friday it had entered
into exclusive talks to sell its book unit to a publishing company
controlled by Silvio Berlusconi, the former Italian prime
minister.
Arnoldo Mondadori (MN.MI), Italy's biggest publisher by revenue,
has until May 29 to seal a deal to buy RCS Libri, RCS MediaGroup
said in a statement. Italian media have reported that the book unit
could be worth as much as 150 million euros.
RCS MediaGroup's shareholders have often been at loggerheads as
they jockey over the company's most important asset, Milan-based
daily newspaper Corriere della Sera. But with the company having
lost more than 1 billion euros ($1.08 billion) in the past four
years, and recording net debt of EUR515 million at the end of
September, shareholders are struggling to find a way to shore up
the publisher's finances and return it to profitability.
The Agnelli family that controls Fiat Chrysler Automobiles (FCA.
MI) as well as daily La Stampa is RCS MediaGroup's largest
shareholder with a 17% stake. Other shareholders include Tod's
owner Diego Della Valle, tire maker Pirelli (PC.MI), influential
investment bank Mediobanca (MB.MI) and Intesa Sanpaolo (ISP.MI),
Italy's second-largest bank by assets.
Though RCS MediaGroup's shareholders remain divided on whether
the book business should be sold, the company's dire financial
situation could push them to find an accord for the sale, Italian
newspaper la Repubblica reported this week.
RCS MediaGroup Friday also said it had entered into exclusive
negotiations with a "leading financial services firm" for the sale
of its 44% stake in Gruppo Finelco, owner of three radio stations
in Italy.
Write to Eric Sylvers at Eric.Sylvers@wsj.com
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