The private equity firm withdrew the £60 million sale of Eagle Rock Entertainment, a music video specialist, in October after offers failed to meet expectations.

At Boosey & Hawkes, HgCapital opted to back a management plan to invest further in the business through bolt-on acquisitions — implying that company bosses were not keen on a sale. Boosey & Hawkes was up for sale with a price tag of £120 million.

Elevation Partners, a venture capital firm that counts Bono, the U2 singer, among its partners, offered about £115 million, but it could not bridge the narrow gap.

The failure to complete either deal suggests that the appetite for medium-sized media deals remains tight.

ITV is also thought to have had difficulties in the sale of its £80 million Granada Learning education publishing business.

A spokesman for HgCapital said that the firm could afford to bide its time until conditions improved. “We are not in the business of discount retailing,” he said.

Eagle Rock is run by Terry Shand, its founder, who retains a stake. It makes most of its money from the sale of music DVDs, including artists such as Alice Cooper and Metallica. It recently struck a deal to distribute records from the American hip-hop label Death Row outside the United States and Canada.

HgCapital bought 68 per cent of Eagle Rock for £34 million in 2001. Revenue is tipped to reach $70 million (£41 million) this year, up from $55 million in 2004.

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