Chrysalis Unperturbed By GMG Takeover Rebuttal

Radio giant Chrysalis has vowed to continue its search for acquisitions and merger opportunities, despite having its initial approaches to Guardian Media Group rebuffed last week.

In a statement this morning to the City, Chrysalis stated that it would “continue to review acquisition opportunities in the radio sector” which would be “complementary” to its existing radio business.

The move follows an announcement by Chrysalis last week that it had held preliminary discussions over the acquisition of GMG’s radio assets and was considering its next move (see Chrysalis Confirms Speculation Over GMG Purchase).

However, GMG later claimed that its radio assets are not for sale, effectively ending the possibility of a takeover bid by Chrysalis.

Should the move have gone ahead, Chrysalis could have been faced to sell off Galaxy 102 in Manchester in order to avoid investigation from competition watchdogs (see Chrysalis GMG Merger Could Force Galaxy Sell Off).

Meanwhile, the nation’s largest radio consolidation, that of Capital and GWR, now looks set to be completed in May, with the two companies deciding to name the venture GCap Media, and clearing all the regulatory hurdles required of them by the OFT (see Capital And GWR Name Merged Group).

The combined Capital and GWR business will create the UK’s largest single radio operator, with GCap Media worth around £711 million and controlling more than 40% of the nation’s radio advertising market.

Chrysalis: 020 7221 2213 www.chrysalis.com Guardian Media Group: 020 7713 4452 www.gmgplc.co.uk/

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