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3i-backed Lord Alli visits Sir Richard Branson to progress bid for Virgin Radio

Labour peer Lord Alli is understood to have met with Sir Richard Branson to discuss the Lord's £100m offer for Virgin Radio, the Financial Times reported. Brand contracts would allow Sir Richard to veto against the takeover but Branson seems to have indicated that he will not oppose the deal if it can be agreed with Virgin Radio's owner Scottish Media Group, which rebuffed Lord Alli's initial approach last month.

Lord Alli and his management, backed by European private equity firm 3i, are determined to get SMG shareholders on their side to put pressure on SMG.

When Branson's start-up commercial radio station Virgin Radio went on-air on 30 April 1993 it was backed by Apax Partners and Company Ventures. In 1997 Apax and Branson financed the acquisition of the station by Ginger Media Group, which was bought by Virgin Radio's current owner Scottish Media Group in 2000.

3i specialises in buy-outs, growth capital and venture capital and invests across Europe, in the United States and in Asia Pacific.

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