Scottish Radio Raises Bid As Border Shares Rise

Scottish Radio Holdings announced its final bid for Border Television yesterday. Scottish Radio has increased its original offer (see Scottish Radio Launches £116m Hostile Bid For Border TV) to around £141m, having made progress in getting Border to discuss the deal for the first time on Monday. The new offer would give 5 new SRH shares for every 6 Border shares, valuing Border Shares at around £13.02 each. Yesterday Border shares ended trading at £12.82˝ (see Sharewatch). The cash alternative would be £12.75 per share.

Border issued a rejection of the original offer on Friday, claiming that it “significantly undervalued” Border shares (see Border Seeks Alternatives To Hostile Scottish Radio Bid). The Scottish Radio board now claim that its original offer was “full and fair on the basis of the information available at that time”, saying that further benefits have since been recognised. Border’s rejection also claimed “Scottish Radio Holdings has no experience in the television business, and is seeking to buy Border’s radio business to expand its own”. In response, Scottish Radio has said it would enhance the management of Border’s radio assets and retain and improve its television business.

Several other companies are thought to be interested in bidding. Earlier this week it was thought that Capital Radio was considering putting in an offer of £12.50 per share (see Capital Radio Prepares Border TV Bid). This figure is now expected to be raised if Capital tables an offer.

Scottish Radio Holdings: 0141 306 2242 Border Television: 01228 525101