Mediaset and Kirch in TV link-up

ITALIAN broadcasting group Mediaset and Germany's Kirch Group unveiled a new media alliance yesterday with plans for a 1bn euro pan- European television network.

Both firms have held lengthy talks with Rupert Murdoch, but the broadcasters said the deal would be an Italian, Spanish and German venture with a potential 200 million viewers. The alliance includes private Spanish station Telecinco - of which Mediaset and Kirch each own 25 per cent - and Saudi financier Prince Alwaleed Bin Talal. Mediaset and Kirch said they will pool 1bn euros (pounds 670m) in assets in the joint venture.