(Telecompaper) French media conglomerate Vivendi is looking at a potential acquisition of European pay-TV group Sky as one of several options to increase the reach of its Canal Plus pay-TV subsidiary, three people familiar with the matter told Reuters. Vivendi started looking at Sky after reviewing smaller pay-TV targets in Turkey and other European markets. Deliberations are at an early stage and Vivendi has not decided whether to make an offer. Sky, which has operations in the UK, Ireland, Germany, Austria and Italy, has a market value of GBP 17.6 billion, but could cost up to GBP 28 billion, including a 25 percent share-price premium and GBP 6.3 billion of debt. Vivendi will have an estimated EUR 15 billion of cash after it closes the pending disposal of telecom subsidiaries. It had EUR 4.6 billion of net cash at the end of last year. None of the companies mentioned would comment on the matter.