Capital Radio has snapped up Manchester station Big AM from The Wireless Group for £250,000.

Big AM, which broadcasts on the 1458 AM wavelength, will be renamed Capital Gold.

Launched as Lite AM, it has been broadcasting since June 1994 and is based within Quay West, Trafford Park.

The station plays adult-orientated rock and pop music and provides news, travel information and sports services. It lost £460,000 last year.

Capital Radio chief executive David Mansfield said: ''The acquisition is the latest development in our strategy to build our national presence.''

Big AM was bought by The Wireless Group - chaired by former Sun editor Kelvin McKenzie - in December 1999.