LONDON, May 23 (Reuters) - Czech investment group PPF

could consider teaming up with MFE-MediaforEurope, the

company controlled by Italy's Berlusconi family, to bid for

German broadcaster ProSiebenSat.1, two people close

to the matter said.

MFE, which runs commercial TV operations in Italy and Spain,

made a low-ball cash and share bid for ProSieben in March as

part of a push to create a pan-European broadcaster, a strategy

resisted by the German firm which wants to remain independent.

PPF, whose 14.94% stake makes it ProSieben's second-biggest

shareholder after MFE with 30.14%, earlier this month offered to

buy ProSieben shares at a 21% premium to the price implied by

MFE's bid, aiming to reach an up to 29.99% holding.

The move, which was welcomed by ProSieben, complicates plans

by MFE to tighten its grip on the Bavaria-based company.

However, PPF, which owns private TV stations across six

Eastern European countries, is open to considering a joint bid

with MFE among options under review for ProSieben, although no

decision has been made yet, the people said.

PPF has not approached MFE about teaming up and there

haven't been contacts between the two companies, the sources

said. MFE and PPF declined to comment.

MFE is also reviewing its options after PPF's bid, including

a potential increase of its own 950-million-euro ($1.1 billion)

offer, which was pitched at the minimum level allowed by German

takeover law, sources told Reuters last week.

On Thursday, ProSieben advised shareholders against MFE's

"inadequate" takeover bid.

Having already crossed a 30% threshold which triggers a

mandatory full takeover under German law, MFE will be free to

buy additional shares on the market once its current bid lapses.

MFE saw PPF's offer as a way to increase its sway over

ProSieben and potentially boost its bargaining power with MFE in

the future, sources have previously said.

Any potential joint bid would require PPF and MFE to find

common ground on how to run ProSieben, which could be a sticking

point for MFE as the Milan-listed company wants to play a

leading role at the German firm, a third source said.

($1 = 0.8828 euros)