Sharewatch: Capital And GWR In Focus After Talks

Radio groups Capital and GWR were seen in focus last week after confirming merger plans create a single broadcaster worth more than £700 million, in a move that could kick start the long-awaited consolidation of the commercial radio industry (see Capital And GWR Confirm £700 Million Merger Talks).

Confirmation of the proposed merger pushed Capital 1.51% higher in week on week analysis to close at 436˝p, but GWR slipped by 0.95% to finish at 260p on Friday. It is expected that further details of the deal will be unveiled on Wednesday following talks at the weekend.

Meanwhile, GWR’s largest shareholder, Daily Mail & General Trust, saw shares rise by 0.28% week on after voicing its initial support for the merger. However, the company is reportedly demanding a seat on the board of a merged Capital Radio and GWR as a condition of allowing the deal to go through.

Elsewhere, ITV saw shares dip by 4.88% to close at 107źp, despite being given the all clear to go ahead with its proposed £31 million acquisition of Scottish Media Group‘s stake in GMTV. The news proved more beneficial to SMG, which rose by 110˝p last week (see ITV Gets Go Ahead For £31 Million GMTV Acquisition).

The closing prices of media company shares on Friday were: