Sharewatch: GWR Rises As Merger Rumours Resurface

Radio giant GWR saw shares rise by 3.97% yesterday to close at 262p as rumours circulated about a possible merger with rival Capital Radio. Media buyers are understood to have approving consolidation between the groups, providing the market remained segmented, with one group owning multiple formats.

Capital saw a rise of 1.43% as investors warmed to the proposals and Scottish Radio increased by 1.41% to close at 900p on the back of the growing industry acceptance of radio mergers.

Elsewhere, BSkyB saw a dip of 1.84% as reports circulated that Jeremy Darroch, finance director at high street electronics giant Dixons, has been approached by the satellite broadcaster to become its new chief financial officer.

The move could make Darroch the highest-profile senior management appointment made by James Murdoch. It also underlines the company’s determination to increase its customer base. BSkyB already uses Dixons’ 600 stores as prime outlets for its service.

Weakness among several market heavyweights dragged London’s blue-chip index lower yesterday, with the FTSE 100 finishing down 0.7% at 4,468.5. The FTSE 250 also disappointed, slipping slightly to close at 6,163 ahead of the publication of minutes from the Bank of England’s latest interest rate meeting.

The closing prices of media company shares on Tuesday were: