Privately-owned Guardian Media has offered to pay �41m ($60m) for the Jazz FM radio business.

Analysts are expecting a burst of consolidation in the UK media industry following the publication of the Communications Bill which is expected to relax ownership rules.

And some interpreted the speedy action from Guardian Media as an attempt to avoid a price war with rival bidders.

The offer represents a 29% premium over Friday's closing price, and immediately sent Jazz FM shares soaring 27% higher.

The board of the radio station were meeting later on Tuesday to discuss the offer.

Jazz FM, which generates more than half of its revenues from non-radio business such as the sale of CDs, posted a loss of �181,000 in the second half of last year.