Liberty talks with Sirius do not involve takeover-source

NEW YORK, Feb 13 (Reuters) - Liberty Media Corp (LINTA.O) is in talks with Sirius XM Radio Inc (SIRI.O) to invest in the satellite radio company's capital structure, but the talks do not involve a takeover of the company, a source familiar with the talks said on Friday.

The talks between the two companies are friendly and do not include an equity stake, the source said.

Another person familiar with the talks said both EchoStar Corp (SATS.O) and Liberty Media continue intense talks with Sirius XM.

The discussions with EchoStar are more of a hostile nature while Liberty's talks are co-operative with Sirius management, but a winning party remains uncertain, the people said.

Sirius XM's talks with Liberty are seen as a last-ditch attempt by Sirius chief Mel Karmazin to stave off a takeover bid by Charles Ergen's EchoStar, which holds $175 million in Sirius convertible bonds due on Feb 17.

Industry experts have said a Sirius bankruptcy is likely if the company does not cut a deal with either party. (Reporting by Jui Chakravorty Das; Editing by Derek Caney)