(ANSA) - Milan, May 5 - The Milan stock exchange fell by 2.26% by late afternoon Tuesday amid a sell-off of companies including Luxottica and Mediaset.
Luxottica, a luxury eyeglass maker, was one of the worst hit and fell by 5.72% by late in the day while Mediaset dropped by 3.78%.
That came after news that prosecutors were probing the entire board of directors of Mediaset subsidiary EI Towers over its failed bid for RAI Way.
Mediaset is controlled by former premier Silvio Berlusconi.
Telecom Italia shares fell by 4.04% and Generali insurance also shed 3.15% by late in the day.
Analysts said that European financial markets were hit hard by concerns over the outlook for Greece's economy as its government continues talks with former troika members International Monetary Fund (IMF), the European Central Bank (ECB) and the European Union.
The Greek government is attempting to negotiate a deal with its international creditors by May 12, a deadline for a one-billion euro interest payment owed to the IMF.
Athens is hoping for access to more bailout money to meet its obligations.
Milan stock exchange sheds 2.63% at close
Mediaset drops almost 4% after probe of EI Towers opened