Border TV Rejects Scottish Radio Offer

Border Television has this afternoon rejected the £116 million hostile takeover offer made by Scottish Radio Holdings (SRH) earlier today (see Scottish Radio Launches £116m Hostile Bid For Border TV). Peter Brownlow, Border’s managing director, told Newsline that the company felt the offer “significantly undervalues Border’s television and radio businesses.”

SRH’s offer represented a 31% premium on Border’s closing share price of 822½p on 9 March. Border’s stock has since rocketed on the back of Scottish Radio’s approach (see Border Stock Soars On Scottish Radio Rumours), although Border’s directors intend take a defensive stance when appraising the bid for the company’s shareholders. There will follow a two week period during which Border’s shareholders may consider the SRH offer, after which time the Board can recommend whether the bid should be accepted; ultimately, though, it will be a decision for the majority shareholders to make.

There is currently no open dialogue between the Boards of Border TV and SRH. However, Brownlow confirmed that since Scottish Radio made its bid public this morning, a number of other parties have shown their interest in Border and have made offer proposals for the company.

Increased interest in Border, which operates a number of radio stations and an ITV television franchise, is likely to boost the company’s share price even further and give the company a stronger base from which to consider offers. At 5:00pm today Border’s shares stood at £10.75, 172½p above its closing price yesterday of 902½p.

Border Television: 01228 525 101