Chrysalis Radio, owner of the Galaxy and Heart networks, is hatching a bid for the privately-owned south London and Birmingham dance station Choice FM.
Chrysalis is believed to be offering about 8m. It paid 17.5m for Kiss 102 (Manchester) and Kiss 105 (Leeds) when it bought them from Faze last August. Both have since been rebranded Galaxy. Chrysalis has a third Galaxy station in Bristol, and all three play dance music.
Observers say that since Chrysalis acquired the Kiss stations it has made them more mainstream, though it has not abandoned the dance music theme. They claim it is likely to do the same with Choice.
The Digital One consortium is the sole bidder to for the national commercial radio digital muliplex. The consortium includes the GWR Group (57 per cent), NTL (33 per cent) and Talk Radio (ten per cent).