GCap Bid Survives Ofcom Probe as Deal is Agreed at Eleventh Hour

01 April 2008

LONDON: News that UK communications regulator Ofcom is investigating Britain's largest radio company GCap Media as to its part in the spate of media phone-in scandals during 2007, failed to derail the firm's agreed acquisition by Global Radio.

The UK Takeover Panel had ruled that the £371 million ($737.9m; €468.3m) deal must be sealed by 5pm on March 31 - and at the eleventh hour and fifty-ninth minute  the GCap board duly obliged by formally accepting Global's offer of £2.25 per share. 

GTCap's board will now recommend the deal to shareholders. Most will – or should – count themselves lucky to have achieved the agreed price, given the doldrums in which GCap has languished since its formation by merger in May 2005.

Data sourced from Telegraph.co.uk and Financial Times; additional content by WARC staff