Bloomberg's City radio on way

BLOOMBERG, the financial news service, is preparing to launch Britain's first commercial business radio station. The company is believed to have offered more than £10m for London News Radio's AM licence, one of two licences owned by the station.

The station was put on sale at the end of last year by owners GWR, ITN, Reuters and Daily Mail & General Trust, owner of The Mail on Sunday, the Daily Mail, the London Evening Standard and This Is Money.

Sources close to the negotiations expect a deal to be completed within a fortnight. Bloomberg, founded and owned but no longer controlled by billionaire Mike Bloomberg, now Mayor of New York, aims to launch a 24-hour news service on the frequency at present used by talk radio station LBC.

Meanwhile, LNR's FM licence is held by ITN's News Direct, but the Radio Authority, the industry regulator, has given permission for the two stations to swap frequencies, allowing the rolling news format to switch to AM.

Bloomberg made its reputation by supplying financial information to City dealers, but it also has an extensive news-gathering operation that it supplies through its wire service, television channel and radio operations. Bloomberg is expected to model its London radio operation on its New York station, WBBR, which broadcasts a 24-hour business news service.

LNR's shareholders, advised by merchant bank S. G. Hambro, wanted to sell LNR as a unit and received initial bids for the whole group from other radio stations, including Jazz FM and Chrysalis. But the size of Bloomberg's bid made it possible for the station to sell its licences separately.