Chrysalis, one of the last big independent music groups founded by Chris Wright 40 years ago, said it was in talks which could lead to a sale of the music business.

It is understood that interest in the company, which controls songwriting copyrights to acts including Blondie, has come from a number of music majors, including Sony/ATV and EMI.

Chrysalis is understood to have appointed Jefferies International to assess the options for Chrysalis. Jefferies is understood to have contacted potential bidders, including Terra Firma, to ask if they would be interested in the division. One source said it had received a lot of early stage interest.

The group, which has been the subject of bid speculation since it sold its radio assets earlier this year, said the board was currently assessing its options. These included remaining as an independent company, potential acquisition opportunities, or a sale of the company.

Chrysalis said in a statement: “As part of this process, the board is in discussions with a number of parties regarding potential acquisitions.

“The Board can also confirm that it is in preliminary discussions with select parties which may or may not lead to an offer being made for the entire issued share capital of Chrysalis.”

The group’s shares rose almost 7 per cent on the news, up 7.25p to 113.75p at 11.15am.

After selling its radio assets, Chrysalis has a music division which comprises music publishing and recording companies, and a struggling retail unit, Lasgo.

Chrysalis sold its radio business to Global Radio for £170 million in July and the group has said it expects to return £96.5 million to shareholders.

The industry veteran told The Times last month that he was sitting on a “jewel of a business”, but added that he was sceptical about the prospects of receiving an attractive offer in the present climate.

Chysalis, one of the last big independent music groups, has been valued at around £120 million.

Guy Hands, the Terra Firma boss and chairman of EMI, said in a memo to investors that he saw “potential for consolidation” in the industry. Marty Bandier, the chief executive of Sony/ ATV, is aggressively pursuing deals.

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