The shareholders of Spanish television broadcaster Gestevision Telecinco SA (TL5.MC) approved a capital hike plan Wednesday that the company needs to take over rival TV channel Cuatro.

"With this deal Telecinco seeks to become one of the main media groups in Spain not only because of Cuatro, but because it takes a stake in the main pay TV operator, Digital+," Telecinco's Chairman Alejandro Echevarria said during the company's shareholders meeting.

In December, Telecinco agreed to buy Promotora de Informaciones SA (PRS.MC), or Prisa's, free-to-air TV station Cuatro and a 22% stake in Prisa's pay-TV station Digital+ for around EUR1.05 billion in cash and shares. As part of the deal, Prisa will end up owning 18% of Telecinco's shares.

Telecinco has said it expects to finish the merger this summer after the companies get the required regulatory approvals.

Last month, Spain switched from analog to digital television expanding the number of national television stations from six to more than 30, a move that has put pressure on broadcasters to consolidate operations to hold onto audience shares.

Spain's top television stations by audience share in March were state-owned channel TVE-1 followed by Telecinco, Antena 3 de Television SA (A3TV.MC), La Sexta and Cuatro.

Audience share levels are key figures for television stations because they determine how much broadcasters can charge advertisers for commercials.

-By Jason Sinclair, Dow Jones Newswires, +34 91 395 81 27, jason.sinclair@dowjones.com
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