Five groups compete for FM104

Denis O'Brien's Communicorp radio group is believed to have received five bids for FM104, the Dublin local radio station.

It is understood that television broadcaster TV3; Belfast-based UTV; UK private equity group Vitruvian; Liberty Global, owner of the NTL and Chorus cable TV operators; and Vienna Investments, a consortium of former FM104 shareholders led by Dermot Hanrahan, submitted offers for the station by yesterday's noon deadline.

The bids are believed to be above €40 million. Communicorp is seeking to run a short sale process that will yield a binding offer for FM104 in an effort to get approval from the Competition Authority on the acquisition of Emap's Irish radio assets before Christmas.

In July, Mr O'Brien agreed to pay €200 million to buy Today FM, Highland Radio and FM104. He is being forced to sell FM104 by the Broadcasting Commission of Ireland (BCI) and the Competition Authority as he already owns 98FM and Spin 103 in the Dublin market.

The station is expected to sell for between €40 million and €50 million. FM104 is projected to achieve earnings before tax and finance costs of €4.5 million for the year to the end of March 2008.

Informed sources said the station has exceeded its targets in the year to date and the final earnings outcome could be higher.

TV3, UTV, Vitruvian and Vienna were underbidders for Emap's stations earlier this year. It is understood that Vienna was the second-highest bidder to Mr O'Brien at that time, but was outgunned by about €7 million.

The Irish Times Ltd, which also made the shortlist of bidders for Emap's radio assets here, has not lodged an offer for FM104. Suggestions of a management-led bid for FM104 appear to be wide of the mark.

Liberty Global is the only one of the bidders not shortlisted for the Emap stations in the summer.

It does not own any radio assets but its content arm, Chellomedia, has a number of television investments in Europe, including a stake in Dublin-based City Channel.

Sources said that bidders might be given the opportunity to meet FM104's management team early next week.

TV3, UTV and Vienna are seen as the frontrunners. UTV owns five radio licences in the Republic and came close to buying FM104 before it became part of Emap's stable.

TV3 is keen to break into radio and is one of two groups shortlisted for a new multi-city licence.

The Vienna consortium comprises FM104's former owners. It is part of the 4FM bid that has also been shortlisted for the multi-city licence.