Virgin on alert to buy back radio brand from SMG

Virgin Group could take back the Virgin Radio brand should SMG's merger with UTV go ahead.

Industry insiders claim that under the terms of Virgin Group's contract
with SMG, the former can revoke the use of its brand in the event of a
merger. It is understood that the clause specifically relates to firms

that are seen as competitors to the Virgin Group, which has a wide

presence in the media sector. SMG acquired the radio station after
buying Ginger Media Group for £225m in 2000.

SMG is currently operating without a permanent chief executive and has
halted its search for one during the merger process.

Fru Hazlitt had been a frontrunner for the position, before resigning as
Virgin Radio's chief executive earlier this month. She has since been
linked with a variety of roles at rival radio media group GCap
Media.

Hazlitt is thought to be talking to Ralph Bernard, chief executive of
GCap Media, about becoming managing director of GCap London, which would
put her in charge of Capital 95.8.

Beleaguered GCap has already drafted in former RAB chief executive
Douglas McArthur on a consultancy basis in its commercial
department.

A spokesman for SMG said he could not comment on the merger.