Under current media ownership legislation, the UK's largest commercial radio operator is only able to buy a regional analogue licence. If it sold some of its stations however, it could acquire AM and smaller FM licences with a third party, retaining an option to take control of the licences when the Broadcasting Act changes.
Radio had been expected to benefit from the relaxing of media ownership rules in the new government's first parliamentary term, but the government has postponed reviewing the communications bill until 2002, angering a lot of media companies wishing to expand.
Capital CEO David Mansfield said, "We had been told by Chris Smith (the former culture secretary) that the rules were going to be changed earlier than they will be. We are not going to let current legislation get in the way."
Mansfield said that selling some stations would be an option for the radio group to make some disposals to counteract the impact of the delay in revised media ownership rules.
Industry observers have suggested Capital Gold, the AM franchise, is a likely casualty, although Mansfield declined to be drawn on which assets would go.