Major media groups are sizing up Waterford radio station WLR FM for a possible bid after several shareholders indicated they wanted to sell their shareholdings.

The station last night refused to comment on its future ownership, but it is understood a sale or a management buyout are both being actively considered.

The station has many long-standing shareholders who are anxious to sell their interests. However, some larger shareholders, such as chief executive Des Whelan, are believed to be more reluctant to sell.

WLR (Waterford Local Radio) has a 30 per cent stake in regional station Beat FM. That is likely to be offered for sale as well.

Among the companies likely to take an interest in WLR is Emap Ireland, owner of Today FM, UTV and Radio Kerry, which has ambitions to acquire further assets in Munster.

WLR is owned by a company called South East Broadcasting. According to filings with the Companies Office this company had retained profits of €1 million as of March 31st, 2005. The filings show that among the shareholders are: Egidio Giani, a well-known radio technician with experience in the radio business going back 20 years; Peter Queally, a co-owner of Dawn Meats; and Gerard Sheridan, of the Sheridan Motor Group.

Potential buyers who spoke to The Irish Times said the station would be an attractive proposition, but only if priced correctly. Valuations in the radio business have been coming down over the last two years. However, stations based in major cities can attract hefty premiums.