Global Radio’s plans to merge its operations with GCap Media have been put on hold until the end of July at the earliest, while the Office of Fair Trading carries out a regulatory review. Insiders say it could be months before the two companies are merged.
GCap’s £375m takeover by Global is set to be completed by June 6, with chief executive Fru Hazlitt (pictured) and chairman Richard Eyre standing down at that time. Global radio chief executive Ashley Tabor and its chairman, Charles Allen will also temporarily step down from Global in order to take the same roles at GCap, during the review.
The OFT may decide that the merger is approved, not approved but with remedies or referred to the Competition Commission.
Richard Park and Don Thompson will be Global’s acting chief executive and chief operating officer and will run the company during the period.
Eyre announced he had been appointed as non-executive director of mobile advertising company Rapid Mobile Media last week when it was not clear if he would step down form the GCap Board at the time (MW.co.uk May 15).
In April, a document revealed Hazlitt’s basic salary had been increased from £265,000 to £325,000 when she was appointed chief executive in December. It also revealed that if her contract was terminated, she would be eligible for a year’s salary, plus benefits.