Berlusconi's crisis affects media empire

ROME, Nov. 12 (UPI) -- A growing political crisis in Italy is driving investors from the prime minister's media domain amid concerns about his coalition's stability, observers say.

Gianfranco Fini, a former ally and now a rival of the prime minister, Silvio Berlusconi, repeated a threat Thursday to withdraw his support from the government unless the Berlusconi agrees to step aside, the Financial Times reported.

An aide told the Times Fini would announce his withdrawal of support after Berlusconi returned from the Group of 20 summit in Seoul. Fini's Future and Liberty party has one minister and three senior officials in the coalition government.

Concerns about Berlusconi's ties to Mediaset have been a cause for the stock's volatility, investors said. Berlusconi controls Mediaset with a 40 percent stake through his family's holding company, Fininvest.

Shares in Mediaset fell 10 percent on the Milan stock market during the past two days -- the stock's value losing about $842 million.

Berlusconi's political troubles have been aggravated by allegations of sexual improprieties and abuse of power.

Should Fini, the speaker of Italy's governing body, support a no-confidence vote, Berlusconi could be forced to step down and ask President Giorgio Napolitano to call snap elections.

"In my country, I have some difficulties in this moment," Berlusconi was quoted as saying while at the summit.

The Italian news agency ANSA reported Berlusconi, midway through his five-year term, doesn't intend to quit.

Observers said Berlusconi apparently fears offering his resignation to Napolitano without a guarantee that he would be asked to try to form a new government. The Times said some senators in the prime minister's People of Liberty party could be persuaded to back a new prime minister, with Finance Minister Giulio Tremonti considered a leading contender.