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Italy's Prime Minister Silvio Berlusconi is close to reaching a separation agreement with his wife Veronica, who asked for a divorce after accusing him of consorting with a 17-year old girl, Italian newspapers said.The pair and their lawyers spent nearly five hours in a Milan court on Saturday, reports said on Sunday."We are close to an agreement," ANSA news agency quoted legal sources as saying after the meeting, without elaborating on the details.Newspapers said Veronica Lario, who had initially requested a monthly alimony of 3.5 million euros ($4.70 million) compared to her husband's offer of up to 300,000 euros, appeared ready to lower her demands after Berlusconi agreed to let her keep a luxury villa near Milan.Still to be worked out was an arrangement for the three children of the estranged couple and their possible future role in Berlusconi's business empire.The prime minister's lawyer was not immediately available for comment.Veronica, 53, announced her intention to divorce the billionaire tycoon-turned-politician to newspapers in May last year after it emerged that he had attended the 18th birthday party of an aspiring model in Naples. She said she could no longer remain with a man "frequenting minors".Berlusconi, 73, repeatedly denied being involved with the Naples girl, but was later embroiled in another scandal after an escort said she slept with him and was paid to attend parties at his Rome residence. Berlusconi says he has never paid for sex.Under Italian law, divorce proceedings can only begin three years after a separation agreement is reached.The premier, who is Italy's second richest man, has three children with Veronica, aged 25, 23 and 21.However, it is his two children by his first marriage who play the most prominent roles in his media empire. Son Piersilvio is vice-chairman of broadcaster Mediaset while daughter Marina chairs holding company Fininvest and publishing arm Mondadori.(Reporting by Silvia Aloisi; editing by Myra MacDonald)
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