Sharewatch: Capital Rises Despite Possible Merger Delays

Capital Radio put in a strong performance last week, rising by 3.89% to close at 427p on Friday despite worries that the broadcaster’s merger with rival GWR could be delayed by up to six months if advertisers and rival radio groups call for a Competition Commission enquiry into the deal.

The concerns were raised on Monday, as influential advertising groups ISBA and the IPA fretted that the merged entity, which would control more than 40% of national radio advertising revenue, would dominate the industry and could push up the cost of airtime (see Capital/GWR Merger Could Face Competition Enquiry).

Satellite giant BSkyB also performed well, adding 4.52% to close at 531˝p. The broadcaster recently announced a raft of new products, designed to boost consumer interest in its services, but reports this morning suggest that the continuing slowdown in subscriptions may be more evident than expected in this week’s first quarter results.

Newspaper giant DMGT also increased its price last week, adding 1.10% in week on week analysis, and showing no signs of negative growth, following reports that Richard Desmond is considering a free-sheet transformation for the Daily Express, a move which could potentially damage DMGT’s Evening Standard and Metro titles (see Desmond Ponders Relaunching Express As Free-Sheet).

The closing prices of media company shares on Friday were: