In a statement, Chrysalis said it is in advanced negotiations to acquire London News Radio for a cash consideration, while also confirming it is in separate negotiations to dispose of Bristol-based station Galaxy 101. It refused to comment further.
GWR confirmed that it is in advanced discussions regarding two possible separate transactions involving London News Radio Limited and Galaxy.
If the deal goes ahead, it would be one of the first major asset swaps between radio owners who will seek to consolidate if media ownership laws are relaxed as part of the government's proposed communications bill. Both companies, however, have refused to comment on whether talks are taking place.
Chrysalis became interested in London News Radio earlier this year soon after London News Radio's shareholders -- GWR, Daily Mail & General Trust, Reuters and ITN -- put it up for sale in December.
At the time, Chrysalis faced competition from Jazz FM, which has since been bought by Guardian Media Group. Bloomberg is also believed to have been interested in the company, while Express Newspapers owner Richard Desmond was reported to have been interested in Chrysalis's radio assets, including Heart FM.
GWR is reported to have been in talks with Kiss FM owner Emap and clubbing brand Ministry of Sound about creating a joint venture with GWR's dance brand Vibe. However, these talks are understood to have ground to a halt and GWR is now believed to be looking into merging Vibe into the Galaxy dance music station after the asset-swap deal is completed.
Chrysalis's share price was up 1.5%, or 2.5p, to 167.5p on the news, while GWR was up 2.4%, or 4p, to 169p.
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