Shares of British Sky Broadcasting Group Plc fell 22 pence to 601.5 pence in early trading on Friday but later recovered after the company confirmed talks with Kirch Gruppe to set up a German satellite television service had collapsed because of failure to agree a number of fundamental issues. British Sky Broadcasting was to have taken a 49% stake in DF1, Kirch’s digital television system. Meantime, Pace Micro Technology Plc, whose shares were among the day’s biggest losers as sentiment was hit by the two announcements. They were off over 10% at 98.5 pence, a decline of 11 pence because people had been looking for British Sky Broadcasting Group Plc to announce a decoder order last week, and being shut out of the first round of the cable race did not help sentiment either.