Telefónica of Spain and France's Vivendi have held talks with regards to a possible joint bid for Digital Plus, the satellite pay-TV business being sold by Spanish media group Prisa to reduce debt.

According to reports, Spain's telco has emerged as a frontrunner in the sale process, although it had still not lodged a binding bid, nearly two weeks after Prisa's own deadline. Vivendi, the media group, also remains interested. The two have discussed a joint bid to ease competition concerns.

However, a tie-up between Telefónica and Digital Plus would further squeeze Ono, the cable group.

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