Denis O'Brien's Communicorp is preparing to sell Highland Radio in Donegal. It is understood that a number of parties have expressed an interest in the station, which is expected to fetch €10-12 million. Ciarán Hancock, Business Affairs Correspondent, reports.

Mr O'Brien takes control of Highland on January 15th as part of a €200 milion deal with UK media group Emap to buy Today FM, Highland and Dublin station FM104.

Communicorp is believed to have received several approaches for the Donegal station and has indicated that it is prepared to offload the company.

It is understood that Charlie Collins, Highland's managing director and a member of the consortium that sold the business to Scottish Radio Holdings in 2005 for €7 million, is looking at putting together a bid for the station.

Mr Collins and Mr O'Brien were members of a consortium that bid in the mid-1990s for the national licence currently held by Today FM.

River Media, which owns a number of newspaper freesheets in Donegal and is also a backer of Ocean FM in the northwest, is also believed to have expressed an interest in the business.

Belfast-based UTV is another possible bidder. UTV holds licences in Dublin, Cork, Limerick, Louth and also has a station in Belfast.

Highland is one of the most successful commercial radio stations in Ireland with a reach of 60 per cent and a market share of 63 per cent, according to the latest JNLR listenership figures. For the year to the end of March 2008 it is expected to achieve earnings before interest, tax, depreciation and amortisation of €962,000 on revenues of €2.6 million.

That represents a healthy margin of 37 per cent.

Highland began broadcasting in 1990 and its current contract runs until 2014. The station employs 54 staff.

Earlier this week, Mr O'Brien agreed to sell FM104 to UTV for €52 million. This was to comply with rulings from the Competition Authority and the Broadcasting Commission of Ireland in relation to its deal with Emap.

Both regulators were concerned about Mr O'Brien's control within the Dublin radio advertising market. He already owns 98FM and youth station Spin 103.

A sale of Highland would mark the first time that Mr O'Brien has sold a radio asset in Ireland without being compelled by competition regulators.