GCap Media, the commercial radio group, has turned down a £333m bid from Global Radio. The group says the offer does not take into account new chief and former Virgin Radio boss Fru Hazlitt’s new strategy, outlined earlier this month.
The radio group, which owns London stations Capital Radio and Xfm, unveiled a plan to pull back from digital radio and concentrate on GCap’s key brands in order to increase profits.
GCap says: “The revised proposal significantly undervalues the company because it does not reflect the value that would be created by implementing the strategy of the new chief executive.”
The group says it is trading within expectations for the year so far, with like-for-like revenues forecast to be up by 4% in February. Last year, GCap lost £8m on digital, with £23m of spending bringing in revenues of £15m. Hazlitt says her proposals will save almost £9m a year and increase profits by £12.3m.