Capital Radio and GWR Group are locked in advanced talks about the structure of a possible merger which would create the UK's largest commercial radio group, Sunday newspaper the Business reported.
Capital Radio has entered talks with GWR's majority shareholder, the Daily Mail & General Trust Plc, about buying its stake after an attempt by Capital at a hostile take-over stalled earlier this year, the paper said.
DMGT, which controls nearly 30 percent of GWR's shares, was at that time trying to buy the Telegraph newspaper group, which was later sold to the Barclay Brothers. But now talks between Capital and GWR have been revived, the paper said.