The board of Scottish Radio Holdings has advised its shareholders to take no action following today’s announcement that SMG is to raise its stake in the group. It is believed that SMG’s move may lead to an auction for the company and the board has told its shareholders to cease trading shares in the group on the market.
Next week’s publication of the Government’s White Paper on the future of communications is expected to bring about significant changes to media ownership, particularly in the radio sector. This is likely to lead to further consolidation within the radio industry and the board of SRH is urging shareholders to await possible bids from larger rivals.
Richard Findlay, group chief executive at SRH, said: “Many players in the media sector have been awaiting the Government’s thinking on the way ahead for broadcasting, including their proposals for a significant liberalisation of the ownership rules.”
