GCap Turns Down Global Radio Takeover Bid

GCap Media, owner of Capital Radio and Classic FM, has rejected a takeover bid from Global Radio, thought to be worth about £310 million.

In a statement released today, GCap said that Global Radio had made an offer of 190p per share.

However, the group added that the board had rejected the offer as it “believed that it significantly undervalued the company”.

The offer was made on December 17, with reports claiming that it was rejected by Richard Eyre, chairman of GCap.

It is understood that some GCap shareholders were unhappy that they were not informed of the offer.

Global also released a statement today, confirming that although it had made a bid for GCap, it was not certain that it would make a follow-up offer for the group.

In June 2007, Chrysalis sold its radio division to Global Radio for £170 million (see Chrysalis Radio To Sell For £170 Million), and Global had been one of the favourites to buy Emap’s radio arm when it was sold at the end of last year (see Continued Consolidation For Commercial Radio?).

GCap Media: 0207 663 7000 www.gcapmedia.com

Global Radio: www.globalradiosales.com