STOCKS NEWS EUROPE-Telecom Italia Media rises on tie-up reports

Shares in Telecom Italia Media (Milan: TME.MI - news) rise 5.2 percent after media reports that a tie-up between the Italian broadcaster and publisher L'Espresso will be on the agenda at parent Telecom Italia (Other OTC: TIAJF - news) 's board meeting on Thursday.

Shares are quoted at 0.1420 euros at 1155 GMT, outperforming a 0.4 percent dip on the broader Milan bourse.

Italian newspaper Il Messaggero reports on Thursday that Telecom Italia could hold a 70 percent stake in the unit produced by a merger of the two companies' digital broadcasting activities, while a partner company would take 30 percent.

Among possible partners is investment fund F2i, Messaggero reports, adding that the total value of the company would be 300 million euros ($407.84 million).

Telecom Italia Media declined to comment on the report, while officials at F2i were not immediately available to comment on the article.

"The possible entry of F2i would be positive because it would cash in on the value. Uncertainty remains over the company structure, considering that Telecom Italia Media... has a market cap of 190 million euros and 270 million euros in debt," writes broker Equita Sim.

Telecom Italia's board is meeting in Milan on Thursday to discuss the company's governance, ownership, and board composition.

($1 = 0.7356 euros)

Reuters messaging rm://massimo.gaia.thomsonreuters.com@reuters.net

rm://isla.binnie.thomsonreuters.com@reuters.net