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Border Seeks Alternatives To Hostile Scottish Radio Bid

Border Seeks Alternatives To Hostile Scottish Radio Bid

Border Television has officially rejected the £100m unsolicited offer made by Scottish Radio Holdings (see Scottish Radio Takes Offer To Border Shareholders), and is thought to be in talks with other media companies to make an alternative deal. The company declined to comment as to whether Chrysalis, thought to be the favoured option, was amongst those in talks. Border already has an advertising sales initiative with Chrysalis, which owns the Heart and Galaxy radio brands. Other possible contenders are thought to include Capital Radio, Clear Channel and Scottish Media Group.

Border is the last of the independent ITV franchisees. The importance of this was stressed in a circular distributed to shareholders today urging them to reject the Scottish Radio bid. The document also pointed to the fact that Scottish Radio’s share price had fallen after the bid was made, from £18.30 to £15.73 by the close of 6 April (see Sharewatch), valuing Border shares at around £9.26 with a cash alternative of £10.25.

Border’s shares, which had risen in anticipation of the move (see Border Stock Soars On Scottish Radio Rumours) ended the same day worth £11.40. Chairman of Border, James Graham, stated that “Scottish Radio, in our view, has failed to present a fair picture of Border.” Chief executive Paul Corley concurred: “The offer significantly undervalues the shares in Border.”

The official rejection also points to Border’s recent success in raising advertising revenue growth and winning regional radio licenses (see New Century Station Boosts Border). Border Radio says it intends to make further applications for major regional analogue licences in the West Midlands and Yorkshire later this year, as well as applying via consortium for regional digital multiplex licences. It will also apply uncontested for a ten year extension on its ITV licence. “Scottish Radio Holdings has no experience in the television business, which contributes over 60 per cent of Border’s turnover, and is seeking to buy Border’s radio business to expand its own.” said Paul Corley, as he urged shareholders to “Reject this offer.”

Border Television: 01228 525101 Scottish Radio: 0141 306 2242

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