GCap bosses have said they will "work together" with the board at Global Radio to further explore the latter's latest offer to buy the former. As previously reported, Global put forward a much more generous offer - valuing GCap's radio operations at £371 million - on Tuesday, a day before the deadline put in place by the City's Takeover Panel. One major GCap shareholder - Standard Life - urged the company's board to consider the offer, and that's what they've said they'll do. With both sides now expressing a willingness to talk, the Takeover Panel have pushed back the deadline for a deal to be done until 26 Mar.
Global CEO Ashley Tabor told reporters yesterday: "We are delighted that the GCap board has made it possible for Global to work towards finalising an offer that will create substantial value for GCap's shareholders. Global Radio strongly believes that a combination of its brands with those of GCap will create a strong and vibrant company that will be able to breathe new life into Britain's commercial radio sector. We look forward to working with GCap in the coming days".
It now remains to be seen if the GCap board will recommend a merger - something that would render much of recently appointed GCap CEO Fru Hazlitt's recently announced strategy for the radio firm redundant. Global still haven't ruled out a hostile takeover if they can't win approval from the GCap board, and with certain significant GCap shareholders reportedly actively considering the Global offer in isolation from their board, such a hostile bid could be successful.