Alli And MacKenzie Eye Up Possible Radio Ad Sales Merger

It is thought that Lord Wahees Alli, the media mogul fronting private equity group 3i’s bid for the station, has held talks with the Wireless Group to discuss combining Virgin’s sales unit with that of Wireless-owned TalkSport, with a view to merging the Company’s advertising sales operation.

Both stations have their own national licences and the proposed deal would save the stations costs by bringing together their national sales teams.

Yesterday, it was revealed that the former head of Emap PLC’s radio business, Tim Schoonmaker, was working with private equity group HG Capital. Although he had been hired in an advisory capacity, it is thought that he would take an offer for the broadcaster if SMG is forced to auction Virgin to the highest bidder (see UBM Considering Sale Of NOP World)2401.

Earlier in the month, SMG turned down a £100 million offer for Virgin by 3i, after turning down the Group’s original offer on December 2004 (see SMG Rejects 3i Offer For Virgin). Lord Alli is reported to be trying to persuade SMG’s largest shareholders, including Fidelity and ITV to put pressure on the board to accept his offer.