UPDATE 1-Communicorp gets part approval for Irish stations

(Adds detail, background)

DUBLIN, Oct 8 (Reuters) - Ireland's broadcasting regulator approved on Monday the sale of two radio stations to Dublin-based Communicorp Group Ltd by British media group Emap Plc EMA.L but rejected a bid for a third station.

The Broadcasting Commission of Ireland (BCI) said in a statement it had approved the proposed sale of northwest Ireland's Highland Radio in Donegal and national broadcaster Today FM. But it rejected the sale of Dublin station FM104.

"The Commission was not satisfied that Communicorp would not hold an undue amount of the communications media in the Dublin City and County franchise area following completion of this transaction," the BCI said referring to FM104.

Emap said in July it had agreed to sell the three stations to Communicorp for around 200 million euros ($281.9 million) in cash.

Sale of the two stations would still need approval from Ireland's Competition Authority, a BCI spokeswoman said.

She added Emap could make a new submission to the BCI, which regulates Ireland's independent television and radio sector, over the station that was rejected.

There was no immediate comment from Emap or Communicorp.

Irish telecoms billionaire Denis O'Brien is the majority owner of Communicorp which was founded in 1989. It owns national broadcaster Newstalk as well as local radio stations including Dublin 98FM.

Communicorp's media holdings include radio stations, Internet portals and service companies in eight European countries.

O'Brien holds a stake in newspaper publisher Independent News & Media INWS.I.