'FREE MARKET' TO REIGN OVER RUMORED TELECOM DEAL, BERLUSCONI

'FREE MARKET' TO REIGN OVER RUMORED TELECOM DEAL, BERLUSCONI

(ANSA) - Rome, February 4 - Premier Silvio Berlusconi denied on Thursday that a takeover of Italy's former telephone monopoly by a Spanish rival hadn't crossed his desk, but said in the event it did, "this is a free market economy".

"We haven't had any word about a proposal regarding Telecom Italia, but if that should change, everyone should bear in mind that this is a market economy and we are a liberal government," he said.

The premier's statement comes ahead of talks Thursday between Industry Minister Claudio Scajola and Telecom executives during which they are expected to discuss rumors of a takeover by Spanish phone company Telefonica that sent share prices racing earlier this week.

While neither companies have commented on the rumors, voiced by Rome daily La Repubblica on Tuesday, a statement about a possible merger is expected within coming days.

After gaining 6% on Tuesday, Telecom Italia shares by 3% the day after to partially recoup on Thursday morning with a rise of 1.3%.