Global Radio Could Walk Away From GCap

Global Radio is reportedly on the verge of walking away from a takeover of GCap, following the rejection of its improved £333 million offer last week.

It is understood that Global does not want to overpay for GCap and is waiting to see whether new chief executive Fru Hazlitt’s strategy for turning the company around pays off (see DAB Dealt A Blow As Gcap Unveils Radical Measures), said a report in the Guardian.

The strategy includes a “radical but realistic” set of measures to boost profits and maintain long term growth for the company, moving the focus away from digital radio and onto GCap’s main brands.

On Friday, GCap said it was rejecting Global’s improved offer of 202p a share, a 6% increase on the 190p per share bid it made in December, ahead of the Takeover Panel’s March 5 deadline for bids to be tabled (see GCap Turns Down Revised Global Radio Takeover Bid).

GCap also announced on Friday that its current trading is in line with the company’s expectations.

Total like for like revenue for February is forecast to be up 4% and within this, like for like radio advertising is forecast to increase by 7% year on year.

GCap Media: 0207 663 7000 www.gcapmedia.com