Vivendi offers compensation to settle dispute with Mediaset: sources

MILAN/PARIS (Reuters) - French media group Vivendi has offered to pay compensation to Mediaset to settle a dispute with the Italian broadcaster over a soured pay-TV deal, three sources close to the matter said on Tuesday.

One of the sources said Vivendi would pay a first tranche of 250 million euros ($295 million) as part of a wider tentative agreement. The person said more money would be paid at a later stage, but did not quantify the amounts.

One of the other two sources said Mediaset could join a joint venture being set up between Vivendi's own pay-TV arm Canal+ and Italian phone group Telecom Italia .

Vivendi is the biggest shareholder in Telecom Italia with a 24 percent stake.

This source said it was too early to say whether the two sides would eventually reach a compromise.

Mediaset, Vivendi and Telecom Italia declined to comment.

($1 = 0.8474 euros)

(Reporting Gwenaelle Barzic in Paris, Sophie Sassard in London, writing by Agnieszka Flak; editing by Silvia Aloisi)