Kelvin MacKenzie, Chairman and Chief Executive of UK radio media company The Wireless Group, has abandoned talks with private equity companies Veronis Suhler Stevenson and is said to now be in talks with 3i regarding his proposed management buyout.
The Group, which owns 16 local stations as well as national station TalkSport, is not officially up for sale but MacKenzie is attempting to put together the buyout whilst investment bankers
Goldman Sachs deal with approaches from other would-be purchasers.
Mr.
MacKenzie and 3i have made no comment, and a spokesman for the
Wireless Group said that no formal offers had been received, but a bid is thought to be imminent. The move would further confirm 3i's interest in the consolidation of commercial radio, following its backing of Lord Alli's £100m bid for **Virgin
Radio, a bid which has been fiercely resisted by the station's owner, SMG**.
The chief executive of the Local Radio Company, Richard Wheatly, said yesterday that the company would bid for the Wireless Group's local stations if its interests were broken up, but sources say that MacKenzie's priority is to buy the business in its entirety. It is thought that the local stations could realise around £75m if sold, meaning a quick return for the backer.