Global Radio could be ready to walk away from a takeover of GCap, following the rejection last week of its improved £333 million offer.
According to a report on the Guardian, Global does not want to overpay for GCap and is waiting to see whether new chief executive Fru Hazlitt’s recently announced measures to boost profits and maintain long term growth pay off.
The strategy sees GCap moving its focus away from digital radio and onto GCap’s main brands.
On Friday, GCap said it was rejecting Global’s improved offer of 202p a share, a 6% increase on the 190p per share bid it made in December (see ITV Welcomes Ofcom’s Public Service Proposals).
In January, the Takeover Panel gave Global Radio a five week deadline to make an improved bid for GCap (see Global Radio Gets Five Week Deadline For New GCap Bid).
GCap also announced on Friday that its 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.
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