The multimillion-pound take-over bid for Kingston Communications by the Carlyle Group is rumoured to have stalled, due to lack of progress with Hull City Council.

Discussions are believed to have reached a standstill because little progress has been made with the council, which owns 31% of Kingston Communications. By law, any organisation holding more than 30% of the equity in a company has to give its consent to a takeover. The Carlyle Group made an approach in November, but a deal has yet to be agreed, and no decision on it has been reached by the council. A council spokesman confirmed no meeting of the three-member shareholder committee had been scheduled and declined to comment further.