UTV and Guardian Media Group are among the companies considering bids for Virgin Radio.

Jefferies International, the investment bank advising SMG on the sale, is understood to have sent information on the company to both media groups and other prospective buyers last week, after a number of expressions of interest.

The latest attempt to sell Virgin Radio comes after an attempt last year to either float or sell the business.

Plans to list Virgin Radio on the stock market were withdrawn in the autumn after the departure of Paul Jackson, its chief executive, who moved to GCap Media, and the City's growing concern over media stocks amid a difficult advertising market.

SMG also tried to sell the business, but decided against this when bids came in far below the £70 million to £90 million that it had hoped for.

SMG acquired the radio business in 2000 as part of a £225 million deal.

Prospective buyers are known to have concerns about their ability to use the Virgin brand. If Virgin Radio is sold to a trade buyer rather than floated, Virgin Group has the option to revoke the company's licence to use the brand.

At the same time as pulling the float, SMG appointed Richard Huntingford, the former chief executive of Chrysalis, as chairman of Virgin Radio.

Some prospective buyers were encouraged by the news of Mr Huntingford's appointment because he has had a strong relationship with Virgin Radio, having sat on the board of Virgin Mobile in 2005 as a non-executive director.

The appointment of Mr Huntingford was a U-turn in strategy. SMG has been talking to headhunters about finding a new chief executive to lead an initial public offering, after the departure of Mr Jackson.

Those also likely to have asked for the information memorandum include Global Radio, which owns Heart 106.2 and Galaxy, and Vitruvian Partners, the private equity group. Both groups lost out to Bauer, the German media group, in the auction for Emap's radio assets.

Global Radio is also pursuing Capital 95.8, having last month made a takeover approach for the group that was rejected by the board.

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