Focus Media Holdings Ltd, China's largest listed advertising company, is bidding for the local IT consultancy iResearch Group, the company's latest move to carve out a niche in China's online advertising market.

"We have been in talks for the acquisition since early this year," says Yang Weiqing, iResearch's general manager. "Besides Focus Media, we are also negotiating with other advertisers and consulting firms."

Yang and officials from Focus decline to reveal further details. It was reported earlier that the advertising company may pay as much as $10 million for the IT researcher.

Established in 2002, iResearch has become one of China's major IT consultancies. Focusing on the Internet, the company releases more than 50 reports each year, covering topics such as the shopping habits of local Internet users, the company says.

Shanghai-based Focus paid as much as $300 million in cash and shares this March to acquire Allyes Information Technology Co Ltd to enter the online advertising market.