More Group Urges Shareholders To Accept Clear Channel Bid

The ongoing takeover saga of outdoor advertiser More Group yesterday took another turn as Clear Channel Communications announced that it had raised its stake in More to 30%. This effectively scuppers the takeover plans of French outdoor group, JC Decaux, which had made an offer of £475 million. This offer is currently being investigated by the Monopolies and Mergers Commission and has lapsed.

More Group is strongly recommending to its shareholders the raised Clear Channel offer which values More at 1110p per share – 26 times greater than More Group’s 1997 earnings per share. The value of this offer is approximately £475 million.

Not only does More believe that a merger with Decaux will be ultimately prohibited, but it is also claiming that Decaux’s “speculative proposal may never materialise”. The relations between More Group and Decaux have been strained ever since the announcement of the takeover intentions (see Decaux To Take Civil Action Against More Group). The takeover by More of Manchester outdoor company Town & City, placed further pressure on Decaux’s bid on competition grounds (see More Complicates Decaux Merger With New Acquisition).

US group Clear Channel was the first to bid for More with an offer of £446 million early in March this year (see Surprise Takeover Of More Group For £446m); Decaux launched its £475 million counter-bid a few weeks later (see More Group Withdraws Clear Channel Agreement). Decaux later increased this bid to £522 million.

The Takeover Panel has now ruled that Decaux may not increase its bid further unless Clear Channel’s bid fails. It has also said that Clear Channel will be allowed to raise its stake beyond the normal 30% stake-building ceiling allowed in takeover bids.

Clear Channel’s offer closes on 13 June 1998. More Group’s shares closed yesterday down 24.5p at 1108p.

More Group: 0171 287 6100