FILE PHOTO: A Vivendi logo is seen in Paris April 8, 2015. REUTERS/Gonzalo Fuentes/File Photo

MILAN (Reuters) - Italian broadcaster Mediaset MS.MI is ready to modify the governance of its pan-Europe TV reorganisation in order to reach a compromise with hostile shareholder Vivendi VIV.PA>, a source said on Tuesday.

Italy’s biggest commercial broadcaster is seeking to merge its domestic and Spanish businesses into a Dutch entity called MediaforEurope to pursue pan-European tie-ups.

But Vivendi, the second largest shareholder in the group controlled by the family of former Prime Minister Silvio Berlusconi, has challenged the plan.

A Milan court was expected to rule as early as this week on a request from Vivendi to freeze the corporate overhaul.

In a statement on Tuesday Mediaset said the court had extended the deadline to Nov. 22 to give the two sides time to try and reach an agreement.