GCap Management Face Shareholder Revolt

Reports over the weekend suggest that shareholders in the recently-formed GCap Media are to demand that either chairman Ralph Bernard or chief executive David Mansfield leave their posts over dissatisfaction with the post-merger structure.

The company, which began trading last week following the formal merger of Capital Radio and GWR Group, was dealt another blow by the recent RAJAR results, with its flagship Capital Radio slipping behind Chrysalis-owned Heart in terms of listening share, despite maintaining a larger weekly reach (see RAJAR Results Q1 2005: Capital Ahead On Reach But Heart Moves Infront With Hours).

According to a report by the Independent on Sunday, several of the company’s shareholders are unhappy with its management structure, a situation likened to that following the merger of ITV, which saw Carlton’s Michael Green forced to leave the broadcaster following shareholder disquiet.

The shareholder revolt, in ITV’s case, was lead by Fidelity Investments’ Anthony Bolton. Fidelity is also a major shareholder in GCap.

The appointments of Bernard and Mansfield were confirmed earlier this year, along with several other senior positions (see Top Positions Announced For Capital GWR Merger), with GWR’s previous executive chairman Bernard responsible for the move to digital, as well as overall strategy, while Capital’s chief executive, Mansfield, handled the new company’s day-to-day operations.

The company’s merger was approved by competition watchdogs earlier this year, on the proviso that Capital’s 106 Century FM was disposed of in order to meet competition guidelines. The company completed the station’s sale to rival Chrysalis on the morning of its merger, making the deal for £29.5 million (see GCap Begins Trading As Chrysalis Snaps Up Century).

GCap Media: 0207 663 7000 www.gcapmedia.com