By Jonathan Davies

French media giant Vivendi has rejected claims that it is considering a takeover bid for Sky.

Chief executive, Arnaud de Puyfontaine, rejected the reports, raising questions over Vivendi's intentions.

The French media group, which owns its own pay TV company Canal Plus, is sitting on a multi-billion pound cash pot and is understood to want to expand its operations in growing markets.

However, reports of the possible takeover bid did question whether or not Vivendi would be able to afford Sky, taking into consideration Sky's debts.

It is estimated that Vivendi would have had to pay around £26bn for Sky.