* Seat PG says no plan for merger with French peer
* Debt restructuring project to take 6-12 months
* Seat PG shrs up 17 percent, Pages Jaunes flat (Adds Seat comments, background, shares)
MILAN, April 14 (Reuters) - Italian directory company Seat Pagine Gialle set up a commercial alliance with French peer Pages Jaunes on Thursday but said there were no plans to merge the two companies.
One Milan trader said merger talk was partly responsible for a 17 percent jump in Seat's share price, which was also up on winning a legal dispute worth 97 million euros ($139.7 million) announced on Wednesday.
"We are starting commercial links. Today (a merger) is not an option on the table. It is the first step for two directory companies that are not competitors," Seat Chief Executive Alberto Cappellini told reporters.
Seat's link-up with Pages Jaunes unit Horyzon Media is firstly for customers to plan cross-border advertising on websites while a second plan is to work together outside their two home markets, Seat said.
Seat, which is saddled with 2.7 billion euros of debt, announced in March it would look at options for a long-term stabilisation of its financial structure.
The choice of advisers for financial restructuring is due in the next few days while the examination of options will take between six and 12 months, Cappellini said, declining to go into details.
A Milan analyst, who asked not to be named, said the likely outcome would be a debt renegotiation with creditor banks converting some of their debt into shares and shareholders also contributing via a capital increase.
A merger of Seat PG with Pages Jaunes made no sense as the healthy Pages Jaunes is unlikely to be interested in taking over Seat with its huge debt, he said.
At 1402 GMT, Seat shares were up 16.67 percent at 0.088 euros, a six-week high. Pages Jaunes shares were flat.
On Wednesday, Seat's German unit Telegate won a court ruling against Deutsche Telekom over excessive costs of subscriber data in a long-running dispute. ($1=.6945 Euro) (Writing by Nigel Tutt; Editing by David Cowell and Jon Loades-Carter)