Goldman Sachs to Challenge Scottish Radio Bid Talks

22 December 2000

Following friendly merger talks between the respective chairmen of Scottish Media Group and Scottish Radio Holdings [WAMN: 21-Dec-00], US investment bank Goldman Sachs aims to toss a spanner into the works with a rival bid.

According to yesterday’s Daily Telegraph, the bank is attempting to cobble a consortium to mount a bid for SRH. The Goldman plan is for each of five British radio companies to take a 20% stake, thereby avoiding the competition problems that may beset a bid by Scottish Media Group.

The Goldman quintet is said to comprise magazine and radio group EMAP, GWR, media conglomerate Chrysalis, GWG.L, and the Rupert Murdoch/Kelvin MacKenzie-owned Wireless Group.

SRH shares leapt almost 7% at the news, closing yesterday at £17.10.

News Source: CampaignLive (UK)