Investors began buying shares in Berlusconi’s media group despite the founder’s death. This has its own logic, perhaps the heirs will want to sell the asset or enter into a partnership with another holding
The news of the death of former Italian Prime Minister Silvio Berlusconi on Monday led to a sharp rise in shares of his family broadcaster MFE-MediaForEurope.
The death of the main owner, logically, should, on the contrary, cause a decline in shares due to the uncertainty in which the business finds itself. However, according to Reuters, this pattern corresponds to the dynamics that the securities showed as Berlusconi’s health deteriorated in recent months.
“The rise of shares reflects the opportunities that may open up for the company after the departure of its founder from the scene,” the agency notes. Against the backdrop of a dynamically changing situation in the media business, some investors seem to be betting that Berlusconi’s heirs will be more positive about finding a new partner for MFE or selling the business to a larger competitor.
The Italian newspaper Corriere della Sera estimated the fortune of the deceased politician and businessman at € 4 billion. The main asset is a 61% stake in the Fininvest media group, the market value of this share is € 2.9 billion. According to the publication, Berlusconi received € 170 thousand per day from the group’s activities (calculated for the last 2000 days). He also owned villas all over Italy, apartments, yachts, planes and a helicopter.
