NWSA News Corporation

By Ian Walker 

British Sky Broadcasting Group PLC confirmed Monday it has initiated preliminary discussions with 21st Century Fox Inc. over the potential acquisition of its pay TV assets in Germany and Italy.

"These discussions have not progressed beyond a preliminary stage, no agreement has been reached on terms, value or transaction structure and there is no certainty that a transaction will occur," BSkyB said.

Any deal would involve BSkyB buying 21st Century Fox's 57% stake in Sky Deutschland and then launching a mandatory takeover offer for the rest. BSkyB added that, subject to German minimum offer price rules, this offer would be made without a premium.

BSkyB counts 21st Century Fox as its biggest shareholder with a 39.1% stake.

Write to Ian Walker at ian.walker@wsj.com

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