Global in£375m bidfor rivalstations

Apr 2 2008 by Bill Gleeson, Liverpool Daily Post

CAPITAL Radio and Classic FM broadcaster GCap Media backed a £375m takeover bid from the owner of rival stations Heart and Galaxy.

Global Radio – backed by Irish racing tycoons John Magnier and JP McManus – has tabled a takeover offer worth 225p a share for GCap Media.

The news came just an hour after City watchdogs granted Global an extra day under “put up and shut up” rules.

Global – chaired by former ITV boss Charles Allen – has been stalking GCap for months as it seeks to become a powerful force in UK commercial radio after snapping up Chrysalis Group’s radio stations for £170m last year.

The £375m price tag is 18% higher than Global's initial 190p-a- share proposal put forward in December.

It is also 86% higher than GCap’s share price at the beginning of the year, with shares under pressure amid falling advertising revenues.

Global said yesterday that the deal would create a group with a complementary brand portfolio, and would help the enlarged firm be able to “compete more effectively with the BBC” and compete better for advertising.

It said: “The combination of the two groups will create a leading commercial radio operator in the UK, well positioned to capitalise on future growth opportunities in the radio sector.”