Global’s final offer for GCap
Despite newspaper reports, Global Radio is making a third and final offer for GCap Media – at 225 pence per share in cash. Global Radio also wants an extension of the "put up or shut up" deadline to April 2nd, and encourages the board to accept this offer of 370 million for the company.
GCap has rejected two previous offers from Global worth 190p and 202p respectively.
This latest bid has the support of Global Radio's key equity and debt providers in relation to funding, even though it offers substantially greater value than could be achieved by GCap on a stand alone basis, even if the planned cost savings and initiatives outlined in GCap's strategy announcement of 11 February 2008 can be achieved in full.
It is thought that if GCap Media is sold, some of the planned station closures such as the Xfm network and theJazz could be reversed.