Ofcom has refused permission for Your Media Communications Ltd to take control of five local radio stations.
The move means the licences for Bath FM, Brunel FM, Quay West Radio Bridgewater, Quay West Radio Somerset and 3TR will remain with their original owners.
No reason has been given by the regulator as to the reason behind the move, and a spokesperson for YMC told RadioToday.co.uk they are looking at the issues Ofcom have raised.
In other Ofcom news, the latest radio update reports The Arrow is to be replaced on the West Midlands DAB multiplex with a local Asian station Sanjhi Awaz, dabbl has been added to more multiplexes in the South West ready for its full launch on Friday 4th December.
The regulator has also refused two community radio applications – from Flame FM in Aylesbury and Brill Oldies in Brill.