GCap Media has seen its shares rise another 23%, with rumours flying that Charles Allen’s Global Radio could make another bid for the company.
At one point today, Gcap’s share price hit 215.75p, before later slipping back to 208p.
Yesterday GCap announced that it had rejected a £310 million takeover bid from Global Radio, which saw shares rise to 176p, up 45% (see GCap Turns Down Takeover Bid From Global Radio).
According to a statement released by GCap, Global Radio’s proposed offer was at a price of 190p per share.
However, GCap said that it turned down the offer as “the board believed that it significantly undervalued the company”.
A report on MediaGuardian.co.uk quotes Richard Menzies-Gow, an analyst at Dresdner, as saying: “Global have to do the deal. The reason they bought Chrysalis was to consolidate.
He also pointed out that the attitude of the major shareholders – Daily Mail & General Trust, Schroders and Fidelity – will be crucial to any proposed deal.
Menzies-Gow said: “For shareholders, it’s all about returns. They might go for a 60% or 70% return on the [share price at the] start of the year even though many of them got in above that price.
“Most fund managers in a new year look at returns quarter by quarter – it’s a tough year and GCap has earnings risk. But DMGT and some of these other guys may not mind a long recovery story.”
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