Leonardo DiCaprio and Blake Lively Hang Out in Italy

05/23/2011 at 12:55 PM EDT

Leonardo DiCaprio and Blake Lively Hang Out in Italy
Blake Lively and Leonardo DiCaprio
Splash News Online
The Cannes Film Festival is over, but Leonardo DiCaprio and Blake Lively continued to hang out together in Europe.

The pair, who were spotted hugging on a yacht on the French Riviera during the festival last week, were seen again looking friendly in Portofino, Italy, on Sunday.

Lively, 23, and the newly single DiCaprio, 36 – both wearing hats and sunglasses – went sightseeing and "seemed happy in each other's company," according to an observer. They were "laughing and walking" together.





No word on whether the outing was just for fun or had a business element to it. Last November, the two stepped out for dinner at The Lion in New York City, where they were reportedly talking about a movie project.

DiCaprio and model Bar Refaeli confirmed their break-up earlier this month, while Lively split from her boyfriend, Penn Badgley, last year.

Reps for both DiCaprio and Lively had no comment.

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