SRH To Avoid Takeover Through Acquisitions

Scottish Radio Holdings looks set to fend off takeover bids from rival groups by acquiring radio and newspaper companies, according to chief executive David Goode, with the company belived to be actively seeking acquisition targets in a bid to become the hunter rather than the hunted.

The move follows increasing speculation that radio giant Emap will soon swoop on SRH with a take-over bid, having appointed advisors last year, in anticipation of a potential deal.

However, in an interview with the Guardian Goode stated: “In radio and press we are keen to expand when the geography and finance is right. We are not going to over-pay or buy for the sake of buying. We are not going to buy a single radio station because it happens to be available, for instance. We are looking and hopefully we will expand the group.It would have to be something that fits with what we’ve got – with a region in England.”

SRH clearly hopes to prevent Emap from converting its 29.9% stake in the company to a full-blown takeover deal by increasing the value of the company through expansion and acquisitions. However, speculation has been rife that Emap would launch a take-over bid since the cross-media giant expressed an interest in increasing its 29.9% stake in company last year.

The latest radio industry revelation follows a spate of consolidatory talks, with Capital and GWR due to merge later this year, the Wireless Group entertaing offers from investors to take the company private and Chrysalis rumoured to be interested in acquiring Guardian Media Group Radio.

The Capital/GWR merger is due to take place in May, following news that the Office of Fair Trading would not be referring the two companies’ consolidation to the Competition Commission, instead accepting undertakings by the two broadcasters to address competition concerns (see Capital Set To Merge With GWR In May).

Scottish Radio Holdings: www.srh.com

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