Yesterday sources close to the billboard advertiser confirmed its interest in buying Clear Channel Outdoor, its larger American rival. They said that such a deal made strategic sense.

Last month Clear Channel Communications, the advertising business’s parent company, based in San Antonio, Texas, said that it had hired Goldman Sachs to conduct a strategic review of the company. That, in turn, could lead to a sale, with two private consortiums — one comprising Blackstone, Providence and Kohlberg Kravis Roberts, the other Thomas H. Lee, Bain Capital and Texas Pacific — already understood to have expressed an interest.

Clear Channel also owns more than 1,100 radio stations and sources said last night that in the event of an acquisition of the parent company by private equity, JCDecaux would be interested in acquiring the outdoor advertising arm. Clear Channel Outdoor is larger than JCDecaux, with a market value of $9 billion (£4.7 billion).

The Decaux family, which has a 73 per cent stake in the company, would be willing to dilute its stake in the company for a deal such as this. JCDecaux, founded by Jean-Claude Decaux in 1964, has long been interested in acquiring a United States-based rival.

However, it has already started to win contracts in America, including last month a ten-year advertising and naming rights contract for Los Angeles International airport, worth in the region of $200 million. JCDecaux also has street furniture contracts —covering things such as bus shelters and kiosks — in Chicago, Los Angeles and San Francisco.

It is present in 45 countries worldwide. In Britain, it is behind a third of all large advertising panels.

Sources close to the company said last night that this was just an expression of interest and there is a difference between “being interested and this actually happening”.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax