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Mediaset and Sky Italia in contact over pay-TV Premium - sources

Reuters - UK Focus

MILAN, Nov 18 (Reuters) - Italian broadcaster Mediaset (Amsterdam: MA8.AS - news) and rival Sky (Frankfurt: 893517 - news) are in contact over a possible deal concerning Mediaset (LSE: 0NE1.L - news) 's pay-TV unit after an agreement to sell the unit to Vivendi (LSE: 0IIF.L - news) collapsed, two sources close to the matter said on Friday.

France's Vivendi abandoned in July its 800 million-euro deal to buy loss-making Mediaset Premium, throwing the unit into crisis months before its rights to air Italian and Champions League soccer, its main drawcard, will be back on the market.

Mediaset and Sky's Italian subsidiary have denied being in formal talks for Mediaset Premium. No such negotiations can begin until Mediaset and France's Vivendi resolve a legal dispute over their soured deal, said a third source familiar with the situation. (Reporting by Elvira Pollina and Giancarlo Navach, Writing by Giulia Segreti)