Emap Reserves Right To Bid For SRH

Multi-media group, Emap, has said that it reserves the right to make an offer below 1,040 pence per share for Scottish Radio Holdings (SRH), despite its bid for the company being turned down.

Emap was disappointed by SRH’s reaction to its proposal, which Emap believes fully values SRH, both on the basis of its current performance and its future prospects.

SRH, however, claimed that Emap’s offer “significantly” overlooked the value of their radio assets, with SHR asserting that it had consistently been a strong performer in the radio sector on operational and financial platforms over the past five years, with growth predicted to continue into the current year.

Emap has said that it will continue to review the situation and, in the meantime, reserves the right to make an offer below 1,040p should a recommendation by the board of SRH for an offer at 1,040p not be forthcoming.

Emap expressed an interest in acquiring rival broadcaster SRH in April, but has made no formal approach to SRH since it bought its 27% holding in the group in January 2004.

The board said in a statement to the City that the radio assets of SRH would be an attractive strategic fit with Emap’s existing radio assets.

Industry speculation about a possible takeover bid has been rife since the beginning of 2004, fuelled by a report in The Scotsman last summer claiming that Emap chief executive Tom Molney had drawn up plans to make a bid for the remaining SRH shares.

Emap: 01733 568 900 www.emap.co.uk Scottish Radio Holdings: www.srh.com