GCap Media has seen its shares rise another 23%, with rumours flying that Charles Allen’s Global Radio could make another bid for the company.
Yesterday GCap announced that it had rejected a £310 million takeover bid from Global Radio, which saw shares rise to 176p, up 45% (see GCap Turns Down Takeover Bid From Global Radio).
According to a statement released by GCap, Global Radio’s proposed offer was at a price of 190p per share.
However, GCap said that it turned down the offer as “the board believed that it significantly undervalued the company”.
A report on MediaGuardian.co.uk quotes Richard Menzies-Gow, an analyst at Dresdner, as saying: “Global have to do the deal. The reason they bought Chrysalis was to consolidate.
He also pointed out that the attitude of the major shareholders – Daily Mail & General Trust, Schroders and Fidelity – will be crucial to any proposed deal.
Menzies-Gow said: “For shareholders, it’s all about returns. They might go for a 60% or 70% return on the [share price at the] start of the year even though many of them got in above that price.
“Most fund managers in a new year look at returns quarter by quarter – it’s a tough year and GCap has earnings risk. But DMGT and some of these other guys may not mind a long recovery story.”