By Amy-Jo Crowley

LONDON, May 23 (Reuters) - Czech investment group PPF could consider teaming up with MFE-MediaforEurope MFEB.MI, the company controlled by Italy's Berlusconi family, to bid for German broadcaster ProSiebenSat.1 PSMGn.DE, 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)

(Reporting by Amy-Jo Crowley in London; Additional reporting by Elvira Pollina in Milan and Jan Lopatka in Prague; Editing by Emelia Sithole-Matarise)

((Amy-Jo.Crowley@thomsonreuters.com;))