Portuguese president questions telecom-TV deal

LISBON, June 25 (Reuters) - Portugal's president asked Portugal Telecom (PTC.LS) on Thursday to explain why it is considering to buy a stake in the country's leading television station -- a move which is grabbing political attention.

President Anibal Cavaco Silva, who mixes some constitutional veto powers with a figurehead role, said the country's leading telecoms company should explain the move in the name of "transparency".

PT said this week that it was in talks with Spanish media group Prisa (PRS.MC) over the potential purchase of a stake in Portuguese Media Capital (MCP.LS), owner of television channel TVI. Portugal's government has a golden share in PT and can veto or approve major decisions by the company.

"On principle, I don't make public declarations about companies, but, in this case I must make an exception," Cavaco Silva told reporters. "It is a question of transparency."

"Faced with the strong doubts that, at this moment, are installed in Portuguese society it is important that those who are responsible for the telecoms company (PT) explain to the Portuguese what is going on between PT and TVI," he said.

A spokesman at PT said the company had no comment while Media Capital issued a statement on Thursday, saying any deal between PT and Prisa "is exclusively destined at mutual business interests."

Analysts say the deal could be worth around 100 million euros ($139.3 million).

The potential purchase by PT prompted opposition politicians to question Prime Minister Jose Socrates about it in parliament on Wednesday. He denied any knowledge of the transaction.

"I have already said publicly that one of the most important lessons from the financial and economic crisis we are going through is that there has to be transparency and ethics in business," Cavaco Silva said.

Portugal holds a general election in the autumn where Socrates could lose his parliamentary majority.

Markets cheered the initial announcement this week that debt-burdened Prisa may offload a part of Media Capital.

(Reporting by Axel Bugge; editing by Elaine Hardcastle)

((Axel.Bugge@Reuters.Com, +351-213-509-201, Reuters Messaging: axel.bugge.reuters.com@reuters.net))

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