Rumours Of DMGT Bid For GCap

Daily Mail and General Trust (DMGT), owners of the Daily Mail, has indicated that it may be interested in a takeover bid for the new radio giant GCap, of which it already owns 15%.

The £700 million merger of Capital Radio and GWR has created GCap, which will officially be launched on May 9, making a single broadcaster with control of more than 40% of the advertising market (see Capital And GWR Name Merged Group).

Peter Williams, DMGT’s finance director said that the company would make a choice between selling its stake and taking control of GCap, but that there would be no change in the “foreseeable future”, according to a report in The Independent.

“Ultimately, we can’t sit at 14% or 15%. But we are not under any pressure to do anything. We are highly supportive of any merger of the management.”

If DMGT sought to acquire GCAP, it would own nationally, Classic FM and the Daily Mail, as well as London based Metro, the Evening Standard and Capital 95.8 FM, along with the Nottingham Evening Post, and Trent FM.

Earlier this month, the Office of Fair Trading (OFT) cleared the way for a new afternoon or evening newspaper to be distributed to London commuters, threatening the Metro’s domination of the London Underground.

The move will please Express Newspapers owner, Richard Desmond, who has reportedly registered the name London i as the title for his planned free-sheet newspaper which will compete with the Evening Standard and the Metro in the capital.