Cinven, the former owner of IPC, the magazines group, has pulled out of the race for Emap’s consumer titles, while Hearst, the American media group, has held talks with Exponent, the private equity firm, about a bid for the division behind FHM and Grazia.

Cinven, the buyout firm that sold IPC to Time Warner for £1.15 billion in 2001, was seen as a likely bidder for Emap’s consumer titles because of its past experience in the sector.

However, sources said that it was not willing to pay anywhere near the £700 million asking price in a “challenging” magazine market, and has pulled out despite progressing to the second round.

Cinven is understood still to be in the running for Emap’s business-to-business division.

Duncan Edwards, the chief executive of Natmags, Hearst’s UK magazine business, has met Exponent executives and another meeting is expected to take place next week.

Hearst is keen to buy Emap’s core consumer titles including Closer and FHM, while Exponent wants to buy the group’s specialist magazines, which include Motorcycle News.

Hearst is understood to be keeping its options open, as second-round bids are not due until later this month. Sources close to the process said that a bid from Hearst and Exponent would make a “neat fit”.

One source said that Hearst has also held discussions with Quadrangle, the private equity group, over a joint bid. Mr Edwards and Exponent refused to comment.

Recent trading at the radio-to-magazines group, which effectively put itself up for sale in July, is understood to have been weaker than initial figures suggested at the start of the sales process.

This has caused some potential buyers, such as Cinven, to drop out of the running. Other suitors are likely to make lower second-round bids, the source added. One bidder for the consumer titles said it was beginning to have doubts over the value of the assets.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive