GCap Media has rejected a revised takeover bid from Global Radio valuing the company at £333 million.
Global offered 202p a share, a 6% increase on the 190p per share bid it made in December.
The renewed bid comes ahead of the 5 March deadline given by the Takeover Panel in January (see Global Radio Gets Five Week Deadline For New GCap Bid).
In a statement, GCap said that it believes the revised proposal “significantly undervalues the company because it does not reflect the value that would be created by implementing the strategy of the new chief executive, Fru Hazlitt”.
Earlier this month, Hazlitt outlined a “radical but realistic” set of measures intended to boost profits and maintain long term growth for the company, including the closure of some digital stations and the selling off of some licences (see GCap Media Unveils “Radical” Profit Boosting Measures).
GCap also said that the bid does not reflect its unique assets and “fails to take account of the synergies that are likely to be available from consolidation”.
It added: “the level of conditionality attached to the proposal is unacceptable since it does not offer a sufficient degree of certainty of successful completion.”
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