GCap Turns Down Revised Global Radio Takeover Bid

GCap Media has rejected a revised takeover bid from Global Radio which values the company at £333 million.

Global offered 202p a share, a 6% increase on the 190p per share bid it made in December, and ahead of the Takeover Panel’s March 5 deadline for bids to be tabled (see Media In The City: Microsoft Makes Move On Yahoo!).

In a statement, GCap said: “This 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, outlined in the announcement of 11 February.

Hazlitt unveiled a “radical but realistic” set of measures to boost profits and maintain long term growth for the company, moving the focus away from digital radio and onto GCap’s main brands (see DAB Dealt A Blow As Gcap Unveils Radical Measures).

GCap also announced today that current trading is in line with the company’s expectations.

Total like for like revenue for February is forecast to be up 4% and within this, like for like radio advertising is forecast to increase by 7% year on year.

GCap Media: 0207 663 7000 www.gcapmedia.com