The world's biggest radio company, Clear Channel, is reported to be planning to bid for two of the UK's biggest commercial radio stations.

The American-owned firm is said to be interested in buying London's Capital Radio, along with the national station Classic FM.

Clear Channel owns 2,000 radio stations in the US and is valued at $24bn (�15.2bn).

It already has radio interests in the UK with stakes in businesses including Switch Digital.

But, according to the Sunday Telegraph, it is about to announce the sale of these stakes to clear the way for a big bid.

Advertising slump

Roger Parry, chief executive of Clear Channel, told the newspaper: "Clearly we want scale and there is no point buying just one business.

"You have to have a coherent strategy to allow you to consolidate the industry.

"Any buyer considering a UK play has to include Capital high on their list of potential candidates. It is the largest and the most visible," he said.

"The slide rule has been well and truly worn out working out what assets are worth."

Last week shares in Capital radio fell sharply after it reported that its annual pre-tax profits had practically halved because of a slump in advertising.

Clear Channel will be able to bid for the UK radio stations when the government relaxes media ownership rules in the UK.