Emap’s Transworld Bid Cleared By Court

Yesterday Emap’s plans to takeover Trans World Communications were approved by the High Court. The judge ruled that the scheme whereby Emap sets up a separate company with its merchant bankers, Schoders, to own two of its radio licences would not be a nominee of Emap nor under its control.

He also ruled that the Radio Authority had not acted outside its powers; parliament could have acted to prevent such schemes being devised but it had not done so, therefore the authority was entitled to approve such a scheme. The Guardian Media Group, who brought the application, was refused leave to take the case to the Court of Appeal.

The ruling is likely to open the way to similar takeovers, both in the radio and TV industries.