EMAP Radio Business Spin-Off Suggested

Press reports this week have suggested that EMAP is considering spinning off its radio interests into a separate business. This may pump up its market rating ahead of a relaxation of ownership rules and the subsequent consolidation in the radio industry.

EMAP is primarily a magazine publishing group and because consumer press is a slower growth market than radio, the company’s shares are less highly rated than radio-only companies, according to the Independent newspaper. A dedicated radio business might therefore benefit from a higher market rating, allowing EMAP to attain more attractive proposals when consolidation begins.

Analysts at ABN Amro said they do not expect any such move by EMAP to be imminent and claim that it is only one of a number of ways in which the company could participate in UK radio consolidation. EMAP has said that it will not necessarily participate if the cost is too great and believes its current set-up is strong as it leverages off its magazine and radio brands, says the broker.

No official comment has been forthcoming from the company.

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