Italy's Mediaset has agreed to pay Euros276m to Spanish media conglomerate Grupo Correo Prensa Espanola for an additional 12% stake in Spanish broadcaster Telecinco.

Mediaset - controlled by the family of Italian prime minister Silvio Berlusconi - thereby ups its interest in the broadcaster to a majority 52% while Grupo Correo Prensa Espanola's share drops from 25% to 13%. The deal will go through once changes to Spain's Private TV Law allowing a single company to own more than 49% of a broadcaster are passed into effect in January.

Telecinco president Alejandro Echevarria further confirmed that the shareholders intend to float the broadcaster on the stock exchange "as soon as the market allows," possibly in 2004.

Remaining shareholders include ICE Finance BV, with 10%, and Dresdner Bank, which could sell off its 25% stake in the next few days.