Feb 14, 2008 • 1 min read

Global keeps options open on GCap

Global Radio says it may make a new GCap offer, at the same, higher or lower price, or none at all, with a deadline of 5 March.

Global Radio is keeping its options open regarding a possible takeover bid for rivals GCap. As previously reported, new GCap chief Fru Hazlitt earlier this week outlined her vision for turning round the fortunes of the radio firm, by dumping DAB and selling off three quarters of the Xfm network. But her shareholders may as yet decide a sell out to Global Radio is preferable.

Ever since the GCap board knocked back an initial takeover offer from Global rumour has been rife the potential buyer was busy sounding out key GCap shareholders about a second bid or possible hostile takeover. However, they have reassured the City's Takeover Panel that they will either make a new offer before 5 Mar or hold off from making an attempt to acquire their rival for six months.

With all chatter post the publication of Hazlitt's strategy centring on whether Global will now bid again, Global last night told the City that it might make a new offer but at the same offer price of 190p per share, or it might make a new offer with a higher per share offer, or maybe even a lesser per share offer, or maybe no offer at all. Basically they didn't really say anything, accept that the industry should continue to keep an eye on the Global/GCap situation.

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Global Radio big cheeses Charles Allen and Ashley Tabor are expected to meet with key GCap investors like the Daily Mail & General Trust, Schroders and Fidelity in the next week or so.

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