US radio group, Clear Channel, is believed to have ruled out acquiring UK radio assets through hostile bids.
The
Financial Times reports that Roger Parry, the chief executive of Clear Channel International, claimed that the group would only be interested in buying a UK radio operator if it was confident it could combine it with another. He commented: “We are not hostile bidders, we are friendly acquirers, therefore the first step would be talks with potential targets and as yet no talks have taken place.”
The liberalisation of the radio sector, which was confirmed by Culture Secretary, Tessa Jowell, last week, is widely expected to increase mergers and acquisitions movement in the UK radio market. Following lobbying from commercial radio groups the Government amended the proposals it set out in the draft Communications Bill, which required at least three commercial stations, plus the BBC in each region. The Bill now proposes just two commercial stations, plus the BBC in each area.
Clear Channel, which is the world’s largest radio group, was widely expected to bid for Capital Radio and Emap’s radio interests. The group expressed its interest in UK radio assets earlier this year. However, Parry warned: “We are really sceptical about [UK radio] valuations at the moment.”
Parry’s comments suggest that Clear Channel will not be rushing into any acquisition activity in the UK market. He told the FT: “Any [acquisition] would depend on our ability to do a meaningful encore because there’s no point in buying one UK group. The whole point of this is as a consolidation exercise because the resulting stations would be better able to compete with the BBC.”
