Granada Would Not Buy Scottish Media/Ginger Company, Says Chairman

Granada chairman, Gerry Robinson, has effectively ruled out the possibility of his company making a takeover bid for Scottish Media Group if the latter completes a buy-out of Ginger Media. Unveiling Granada’s annual financial results this morning, Robinson is quoted on the BBC News website as saying he would be “strongly against” buying an SMG/Ginger merged company as it would not be a “very good move, financially.”

Scottish Media is understood to have tabled a bid for Chris Evans’ Ginger Media valuing the company at around £225 million (see Ginger Media Group Draws Up Suitors Shortlist). Ginger is currently considering a number of other offers, believed to have come from Clear Channel, French radio company NRJ and BSkyB. It is thought that SMG’s bid offers the largest financial incentive.

Granada has been touted as a probable buyer for SMG since it bought the Mirror Group’s 18.6% share in the company in March this year (see Granada To Buy Mirror’s Scottish Media Stake). However, under current media ownership restrictions Granada would not be allowed to own both Ginger’s Virgin Radio and its own LWT Television ITV franchise. This means that a Scottish Media Group which also owns Ginger – and so Virgin Radio – is a lot less attractive to Granada that SMG on its own. As a result SMG’s interest in Ginger is seen as move to try and deter Granada from making a bid for the company. SMG’s chief executive, Andrew Flanagan, has made no secret that he hopes the company will remain independent.

Gerry Robinson today also confirmed that Granada would be interested in acquiring SMG if the Ginger deal were not to go ahead.

Granada Media Group: 0171 620 1620 Ginger Media Group: 0171 663 2300 Scottish Media Group: 0141 300 3000