Emap States Interest In SRH Merger

Radio giant, Emap , has stated its interest in acquiring rival broadcaster Scottish Radio Holdings, but has made no formal approach to SRH since it acquired its 27% holding in the company in January.

The board of Emap said in a statement to the City that the radio assets of SRH would be an attractive acquisition, fitting well with the company’s existing radio portfolio. However Emap has previously stated that any bid made for SRH’s portfolio would be made at a realistic price, with the company eager to avoid paying over the odds for the broadcaster.

The board stated that it would keep the situation with SRH under review, further fuelling speculation of increased consolidation in the radio industry.

The move by Emap may suggest that a deal between the two broadcasters is in the process of being formulated. However, SRH’s chief executive, David Goode, was bullish in his opposition to any merger earlier this year, stating that the company would fend off takeover bids from rival groups by acquiring radio and newspaper companies to become the hunter rather than the hunted (see SRH To Avoid Takeover Through Acquisitions).

Elsewhere, the nation’s largest commercial radio group looks set to be created next month, with the Capital/GWR merger due to take place in May. The move will follow the Office of Fair Trading’s decision not to refer the two companies’ consolidation to the Competition Commission, instead accepting undertakings by the two broadcasters to address competition concerns (see Capital Set To Merge With GWR In May).

Elsewhere, suggestions of a tie-up between Chrysalis Radio and the Guardian Media Group have been quashed, with GMG stating that its radio assets are not for sale, effectively ending the possibility of a takeover bid by Chrysalis.

Chrysalis, however, remains unperturbed by the rebuttal, last month vowing to continue its search for acquisitions and merger opportunities (see Chrysalis Unperturbed By GMG Takeover Rebuttal).

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

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