Italy Government:No Veto Telecom Italia Mobile Unit Sale

ROME (MF-Dow Jones)--The Italian government Friday denied a newspaper report that said Premier Romano Prodi had put a veto on the sale of the mobile unit of Telecom Italia to News Corp.

The daily Messagero reported Friday that Prodi did not want Telecom Italia to sell its mobile operations to News Corp.

There has been mounting speculation in domestic papers that the sale could take place, although the companies deny it, saying they're only talking about a content distribution deal.

In a statement, the premier's office strongly denied the Messagero report.

Telecom Italia said Thursday that Chairman Marco Tronchetti Provera and News Corp. Chairman and Chief Executive Rupert Murdoch would continue talks on "the supply of media content."

-By Luca Di Leo, Dow Jones Newswires; +39 06 6782543; luca.dileo@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 8th September 2006