* Follows recent co denial of interest in Digital+, Cuatro
* Chairman says possible bond issue "on the CFO's desk"
* Says shareholder lawsuit may hamper capital hike
* May consider a dividend increase
* Stock up over 2 percent
(Adds quotes, background)
ROME, Oct 14 (Reuters) - Italian broadcaster Mediaset could be interested in some TV operations in Spain owned by Prisa, its chairman said on Wednesday, adding a possible bond issue was on "the chief financial officer's desk".
Replying to a question on whether the broadcaster, owned by Italian Prime Minister Silvio Berlusconi, is interested in buying some TV operations from Prisa, Mediaset Chairman Fedele Confalonieri said: "We will see, we are talking to everyone".
He was speaking on the sidelines of an event in Rome.
Mediaset, which already controls Spanish TV player Telecinco , has said several times it was interested in possible acquisitions, though it has denied reports about specific moves.
Last week a Mediaset spokesman said media reports it was interested in buying Digital+ and Cuatro, owned by Prisa, were groundless.
When asked about a possible Mediaset bond issue, Confalonieri said the possibility was on "the chief financial officer's desk".
Last week, a court ruled that Mediaset's controlling shareholder, Fininvest -- Berlusconi's holding company which has 38.6 percent of the broadcaster --, must pay 750 million euros ($1.12 billion) in damages to a business rival in a case about a 1990s takeover battle.
Confalonieri said the damages payment was like "a sword of Damocles" hanging over the possibility of a capital increase.
"If our main shareholders have a sword of Damocles like this and you (Mediaset) want to do a capital increase, you think twice," Confalonieri said.
When asked whether Mediaset could raise the dividend to help Fininvest pay the damages, Confalonieri said the company "could think in theory" about a higher dividend.
"Don't forget we are part of the same church, but two different parishes."
Fininvest has said it would appeal the ruling. Mediaset shares were up 2.67 percent at 4.90 euros at 1044 GMT. ($1=.6717 Euro) (Reporting by Alberto Sisto; editing by Simon Jessop)