STOCKS NEWS EUROPE-CIR jumps as court ruling fuels dividend hope

Shares in CIR rise 5 percent after a higher court frees it up to spend the bulk of the damages awarded it by a lower court from Silvio Berlusconi's Fininvest, in a dispute over the acquisition of publisher Mondadori, fuelling hopes CIR will pay an extraordinary dividend.

A definitive ruling published on Tuesday gives CIR 540 million euros, slightly less than that awarded by the lower court but more than some in the market had expected. The court also allows CIR to use the cash, which had previously been frozen pending a final decision in the case.

"The amount of the damages (left with CIR) is higher than expected," a trader says.

An analyst adds CIR is likely to use the money to pay an extraordinary dividend, continue its share buy-back or, less likely, use the money for acquisitions.

"At the moment the most accredited option is an extraordinary dividend," the analyst says.

Analysts say they do not see big impact for Mediaset (Other OTC: MDIUY - news) and Mondadori, both controlled by Fininvest.

Reuters messaging rm://claudia.cristoferi.thomsonreuters.com@reuters.net

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