Kelvin MacKenzie needs a new backer

Wireless, which owns Talksport and 16 local radio stations across the UK, said talks finished after Mr MacKenzie's financial backer withdrew.

The broadcaster added that it had authorised Mr MacKenzie to seek alternative potential investors.

It also said it had been approached by other unnamed potential bidders.

'Ongoing discussions'

"The company has received expressions of interest from other parties who are considering a possible offer for the company, and the company is in ongoing discussions with such parties," Wireless said in a statement.

It added that it would consider any potential firm offer - be it takeover or management buyout - on its individual merits, although there was no certainty that any would be received.

Broadcast analysts have suggested that any offer would have to be in the region of �100m.

Mr MacKenzie, a former editor of The Sun newspaper, currently owns 7% of Wireless.

Other shareholders include Rupert Murdoch's News Corporation, which owns 30% of the company, and US conglomerate Liberty Media, which has 28% of shares.

The Reuters news agency reported last week that Mr MacKenzie's MBO backer was US private equity firm Veronis Suhler Stevenson.

Shares in Wireless closed down 3.74% at 90p on Wednesday.