Sharewatch: Radio Rivals Rise Amid Merger Rumours

Radio groups Capital and GWR continued to rise yesterday, adding 0.24% and 0.39% to their share prices respectively. The rises follow continued speculation that a merger between the two companies is imminent and that only debate over the management of a combined company is preventing the deal’s completion.

Merging the two broadcasters would create combined business worth approximately £700 million, giving the resultant company a mammoth 40% stranglehold over the UK’s radio advertising market. The deal would also include GWR’s wide reaching network of local radio stations and several City analysts believe a merger would be approved by the Government’s competition watchdogs (see GWR And Capital Boosted By Renewed Merger Speculation).

Elsewhere in radio, the Wireless Group saw a healthy 1.14% rise in its share price following the broadcaster’s announcement that it will bid for the upcoming FM licences in Edinburgh and Blackburn with two new formats (see Wireless Group Enters Race For Edinburgh Licence).

Chrysalis Radio also saw positive growth yesterday, climbing by 2.09% to 195p. The broadcaster recently unveiled new branding for its flagship Heart FM station. The move is designed to build closer brand awareness with listeners after focus group research revealed the old identity failed to effectively convey the content, mood or personality of the station (see Heart Rebrands As It Sets Sights On Capital).

A quiet day’s trading affected US markets yesterday, due mainly to the Jewish new year. The FTSE 100, however, saw a rise of 0.2% to 4,556.5. The FTSE 250 was less fortunate, losing 0.1% to close at 6,259.1.

The closing prices of media company shares on Thursday were: