Denis O'Brien looks set to take control of NewsTalk 106, following share sales by a number of investors.

The station's board has been told that Radio 2000, the company controlled by Mr O'Brien, has bought most of the 2.8 per cent shareholding held by East Coast Radio, which has the radio licence for Co Wicklow.

The station is writing to the Broadcasting Commission of Ireland (BCI) to inform them of the development.

Staff at the station were told last week in a memo that another shareholder, Capital Radio Productions, which owns FM 104, had put its 13 per cent stake up for sale.

In recent months another station Waterford-based WLR sold its small stake, although it said it was taking the step so it could concentrate on other projects like the new regional station, Beat FM.

The chairman of NewsTalk, Mr John Purcell, said yesterday that despite the sale by East Coast and the potential departure of Capital Radio Productions, the station remained confident it was finding an audience in the Dublin market.

He said that while the station regretted the move by Capital Radio Productions, Mr Dermot Hanrahan, the Capital Radio managing director, believed NewsTalk had a future in the Dublin radio market.

If Radio 2000 buys all or part of Capital's shares, Mr O'Brien could find himself in effective control of the station. At present the shareholdings stand as follows: Radio 2000 (38 per cent); Setanta Media (27 per cent); Hyper Trust (12 per cent); LMFM (9 per cent) and Capital Radio Productions (13 per cent).

The Capital shareholding would give Radio 2000 more than 50 per cent and in practical terms it would control the station, although Setanta would remain a substantial player.

Mr Purcell said all the shareholders yesterday received a letter telling them they were entitled to make an offer for Capital's shares. He said this process would take three weeks.

Based on the previous purchasing patterns, it is likely Radio 2000 will subscribe for some or all of the shares. The company has already upped is stake by buying WLR and East Coast shares.

When Capital Radio Productions declined to participate in the last fund-raising round, Radio 2000 decided to put in more money and increased its stake yet again.

Mr Hanrahan said he saw little point in continuing to hold a stake in the station. He said he had been vindicated by the recent low ratings for the station.