* International TV: Mediaset is in talks...

* International TV: Mediaset is in talks with Viacom Inc. that could lead to the sale of a piece of the Italian broadcaster to the U.S. film and television company, Mediaset Chairman Fedele Confalonieri said. Confalonieri would not confirm the size of any stake Mediaset would sell to Viacom. Italian news reports, citing unidentified sources at Viacom, said it was interested in acquiring 5%. Mediaset also is continuing negotiations with British Telecommunications about a joint effort to set up Italy’s third cellular telephone service, the executive said. “These are parallel negotiations,” Confalonieri said at a news conference in Milan. “We are talking to British Telecom for their technology and Viacom for their programming.” The stake in Mediaset would make Viacom one of the company’s largest minority shareholders, and add to a recent flurry of broadcasting alliances sparking across Europe. Because the accord would take the form of a minority investment, it is not expected to run afoul of European Commission rules. Fininvest, former Prime Minister Silvio Berlusconi’s holding company, has sold 28% of the company to institutional investors and banks as a prelude to an initial public offering of another 20% in June.