Italian markets rose on Tuesday as volatile banking shares recovered and broadcaster Mediaset climbed on takeover speculation.
The STOXX 600 was up 0.3 percent after opening slightly lower, with Italy’s banking index pushing up over 1.3 percent.
Shares in Mediaset, the Italian broadcaster owned by the family of ex-Prime Minister Silvio Berlusconi, were bolstered by the news that French media giant Vivendi were looking to expand their current 3 percent stake in the country.
“Vivendi intends to carry on its purchase of shares in Mediaset, depending on market conditions, to become, if possible, the second industrial shareholder in Mediaset, which to begin with could represent 10 to 20 percent of Mediaset’s capital,” Vivendi said in a statement.
Mediaset (BIT:MS) are up 32.89 percent at 3.61 (1530GMT).
Italian banks also had a strong day on Tuesday, after a difficult period following the Italian referendum and the subsequent resignation of Matteo Renzi.
UniCredit shares rose over 10 percent after the bank revealed plans to raise further capital to alleviate its financial worries. The bank disclosed that it would issue 13 billion euros worth of shares, the country’s biggest round so far.
“It’s a hard medicine to swallow, but UniCredit’s move to raise billions of euros and a restructuring programme would put the bank in a much better shape,” said Koen De Leus, chief economist at BNP Paribas Fortis.
UniCredit (BIT:UCG) are currently up 10.64 at 2.68 (1531GMT)
Shares Monte dei Paschi di Siena also rose over 2 percent on Tuesday after sinking spectacularly in the wake of the referendum. Investors gained confidence after Treasury source said on Monday that the Italian government was prepared to bail out the bank if private rescue attempts fail.