GCap Rejects £300m Global Radio Bid

10 January 2008

LONDON: Share values for the UK's biggest commercial radio group, GCap Media, have been boosted by news that the company has rejected a £300 million ($589m; €400.6m) takeover bid from rival Global Radio.

The latter, headed by former ITV boss Charles Allen, acquired Chrysalis Radio last year in a £170m deal and is firmly on the consolidation trail.

GCap, now led by Fru Hazlitt, has languished in the doldrums since its creation in 2005 via a £700m merger between GWR and Capital Radio. Its market capitalisation had slumped to around £200m before Global's bid.

Both parties remain zip-lipped, but analysts think it likely that Global will increase its offer.

Data sourced from MediaGuardian.co.uk; additional content by WARC staff