Global Media seeks more time to finalise GCap bid

THE LONDON Stock Exchange is expected to announce today that Irish-backed Global Media is seeking more time before going ahead with a bid for rival GCap, writes Barry O'Halloran .

However, Global is seeking more time to complete due diligence of GCap, and has asked the London market's takeover panel, which regulates the sale of listed companies, to extend the deadline.

It is understood that Global has no objection to an extension, and the takeover panel is expected to announce today that it will allow the extension.

Global is a private investment vehicle. Irish bloodstock supremo John Magnier and one of his partners in Coolmore Stud, English businessman Michael Tabor, are backing the bid for GCap.

Mr Tabor's son, Global Media chief executive Ashley Tabor, is also a backer. Another principal of Global is former ITV chief executive Charles Allen.

JP McManus and Dermot Desmond are also involved.

Mr McManus and Mr Magnier have been involved in a number of deals together, and were major shareholders in Manchester United before it was sold to the US-based Glazier family.

Global is financing two-thirds of the GCap bid from its backers. Halifax Bank of Scotland (HBOS) is providing the balance.

GCap owns British radio stations Capital 95.8 and Classic FM, as well as a range of other media interests. Last week it bought a majority stake in social networking website Welovelocal.com for £450,000.

The Global Media bid values the company at 225p a share. GCap closed at 200p a share in London last night, a gain of 1.75p or 0.88 per cent.

Mr Magnier is best known as managing partner of Tipperary-based Coolmore Stud, the world's most successful racehorse breeding operation. Mr McManus is not involved in Coolmore, but owns a considerable number of national hunt horses.

Mr Desmond is an investor in a range of businesses through his IFSC-based vehicle, International Investment and Underwriting.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times