The announcement yesterday that talks between pay-TV networks BSkyB and Canal Plus over a link up have reached a dead end dealt another blow to media magnate Mr Rupert Murdoch's plans to expand his empire in Europe.

Canal Plus's confirmation that negotiations have been suspended after the French company's head, Mr Pierre Lescure, met Mr Murdoch in Paris on Wednesday marked the third recent failure by the media baron to seal a quick deal with a European partner.

The two sides had been unable to agree on conditions by Canal Plus that the company remain a French entity with the Vivendi group as its largest shareholder, that Canal Plus control the management and that the new company protect French, Italian and European culture, the French company said in a statement.