Guardian Sweetens Jazz Bid to Win Board Approval

07 June 2002

Britain’s Guardian Media Group looks set to complete its takeover of national radio station Jazz FM after its revised offer won the support of the latter’s board and institutional shareholders.

GMG – which owns 18.4% of the station and agreed to buy the 30.9% stake of Clear Channel Communications last month [WAMN: 09-May-02] – originally offered £41 million ($60m; €64m) for the group, equivalent to £1.80 per share. With this bid it gained the support of 50.5% of shareholders, enough for a hostile takeover.

However, it has raised its offer to £44.5m (£1.95 a share) to win over reluctant directors and investors, and retain senior staff. “For 15p extra we’ve got an agreement that the management will stay on with the business and we do away with a long, drawn-out bid process,” GMG declared.

GMG now has acceptances from over 75% of Jazz FM shareholders, though this is still short of the 90% needed to take the station private.

Data sourced from: Financial Times; additional content by WARC staff