Sharewatch: Chrysalis Bounces Back On Speculation

Radio group Chrysalis put in a strong performance yesterday to undo its previous dip in share price, adding 6.40% to close at 174˝p. Speculation amongst traders over a high profile deal between the broadcaster and Virgin or the Guardian Media Group fuelled the price rise.

Specifics of any impending deal are unclear, however earlier this week group chief executive Richard Huntingford said that the prospect of increased consolidation in the radio sector should not put pressure on companies to merge as a “knee-jerk” reaction, throwing doubt onto any rumours of an impending merger proposition (see Chrysalis Not Pressured By Capital GWR Merger).

Emap also saw an increase, adding 1.66% to close at 825p as the broadcast and print giant told investors it is ‘on track’ for the financial year and posted a 7% increase in total group profits for the first six months of 2004 (see Emap ‘On Track’ To Deliver Revenue Expectations This Year).

Elsewhere BSkyB saw its share price slip, losing 0.05% to close at 547źp yesterday. Tomorrow will see the company launch its revamped interactive services, hoping to attract and retain a larger audience with increased video and televisual content (see Sky Revamps Interactive Services To Engage Viewers).

The FTSE 100 continued to seesaw yesterday, plummeting by 32.7 points at the end of the day to close at 4,770.4 while the FTSE 250 fell even further, losing 34.5 points to close at 6,558.0.

The closing prices of media company shares on Tuesday were: