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

According to people close to the process, Spain’s biggest telecommunications company has emerged as a frontrunner in the sale process, although it had still not lodged a binding bid on Sunday, nearly two weeks after Prisa’s own deadline. Vivendi, the communications group, also remains interested. The two have discussed a joint bid to ease competition concerns.