Macho Macquarie Eyes Britain's GCap Media

27 October 2005

Aggressive Sydney-headquartered Macquarie Bank is reportedly eyeing Britain's largest radio company GCap Media, currently struggling to stabilize its share price in the wake of falling advertising revenues [WAMN: 24-Jun-05].

Since GCap's formation in May following the £711m merger between Capital Radio and GWR, it has reported a 9% fall in advertising income. Its current market capitalisation, at £528m, is now £183m below its merger valuation.

No surprise, therefore that GCap is now the object of takeover speculation [WAMN: 19-Oct-05]. Nor that Macquarie is said to be breathing heavily. Earlier this month it launched a media investment fund expected to raise up to A$996 million ($759.7m; €637.7m; £432.7m).

Macquarie already runs 85 commercial radio stations in Australia and is eager to invest in the UK radio sector. GCap would be a glittering prize for the pugnacious Aussie bank.

But when asked about its likely interest in GCap, a Macquarie spokeswoman offered the usual lofty response: "We do not comment on market rumour."

Data sourced from; additional content by WARC staff