Global raises GCap Media offer

Global Radio is to increase its offer for GCap Media to 225 pence per share in cash.

Global said today it would submit the offer as its final proposal but that it would be subject to the pre-condition that a bid deadline be extended to April 2nd.

Global had been set a March 5th deadline by Britain's Takeover Panel to formally declare its intentions.

GCap, Britain's biggest commercial radio group, has previously rejected two Global offers, at 190 pence per share and then 202 pence, as undervaluing the group and has unveiled a strategy to turn the business around.

Global said the offer represented an 86 per cent premium to the share price before the initial offer was announced and said it offered substantially greater value than could be achieved by GCap on a standalone basis, even if planned initiatives were achieved.

Leading shareholder Schroders said recently that the group was happy to wait for GCap's plans to come through and that the earlier offer of 202 pence had not reflected the true value.