Radio Takeover Battle Begins

It was reported in the weekend press that the controlling stake in Trans World Communications, the second largest commercial radio company in Britain, is up for grabs. The opportunity has come about because Owen Oysten wishes to sell his 24% stake in the company.

Trans World Communications owns four radio stations; Piccadilly in Manchester, Red Rose in Lancashire, Red Dragon in South Wales and Aire in West Yorkshire. The two main contenders are the Guardian Media Group and Emap. Other interested parties are Chrysalis, Capital Radio and foreign investors.

At present Emap holds 29.7% and the Guardian Group holds 20%. If Emap were to purchase the Oyston shares it could launch a full bid and take over the company. The Guardian, however, as owner of a national newspaper, is prevented from owning above 20% of a radio station under present cross-media restrictions. The Guardian would hope for a friendly investor to succeed, not Emap, so that once the market is deregulated, they could buy the shares back and take control.