Kirch, Murdoch, Al Waleed Near Pan-euro Tv Alliance

Germany's KirchGroup, Italy's Mediaset, Rupert Murdoch's News Corp. and Saudi entrepreneur Prince Al Waleed Bin Talal could finalize a deal for a pan-European TV venture this week, a Mediaset spokesman confirmed Monday.

Code-named Project Traviata, the agreement is expected to lead to the pan-European venture, Mediaset managing director Maurizio Carlotti said over the weekend.

Carlotti said 60 hours of talks have been held in past days.

"Like when you climb a mountain, the final stretch is the hardest," he added, speaking to reporters in Milan.

Little is known about Traviata besides that it should involve KirchGroup selling stakes to partners before the German family-owned media and entertainment conglomerate is floated on the stock market.

Faced with huge losses to its failing digital TV platform DF1, KirchGroup is said to be hurting for cash.

Traviata could create a pan-European terrestrial TV network and production studio with KirchGroup and Mediaset as its main players, according to Mediaset executives.

Mediaset and KirchGroup are partners in Spanish broadcaster Telecinco, in which they each own a 25% stake. KirchGroup also owns a small stake in Mediaset.

While Murdoch's role in the alliance is still unclear, it would give News Corp.'s British pay TV operation British Sky Broadcasting access to Germany's pay TV market and would allow the Australian-born media mogul to tap into international soccer world cup TV rights held by KirchGroup until 2000.

Prince Al Waleed's role would be that of an investor.

The Mediaset spokesman said KirchGroup and Mediaset would be the "hard core" of the alliance.

The talks began in mid-July and have been stalled by differences of opinion over the price of KirchGroup stakes, according to Italian sources. Past attempts to forge links between KirchGroup and Murdoch, and between Mediaset and Murdoch, have failed.

KirchGroup and News Corp. in New York had no comment.