Carlo Bernasconi, the head of Medusa Film and one of media baron Silvio Berlusconi's closest long-time associates, has died at the age of 57.

Bernasconi had worked in various divisions of the premier's burgeoning financial empire for more than two decades. ''He was one of our great manager-founders. We're all extremely sad,'' Berlusconi executive Fedele Confalonieri said.

Bernasconi teamed up with Berlusconi in 1973 in the

construction business that was the foundation of the fortune that would eventually make Berlusconi the richest man in Italy.

He later moved into the

company's television and advertising divisions and in 1995 took the helm of Medusa and built it into Italy's largest film production and distribution company.

He is survived by two children, Federico and Veronica.