Global's Golden Bid For GCap

Global Radio has raised the bar on its planned takeover of the UK's largest broadcaster GCap by offering £371 million.
The offer has been endorsed by Standard Life, which holds 7.5 per cent of GCap after Global Radio magnates Desmond, Magnier and McManus upped their offer by more than 11 per cent.
David Cumming, head of UK Equities at Standard Life Investments is reported as saying: "Due to the increased offer, we believe that its appropriate GCap engage with Global Radio with a view to accepting the revised bid terms."
Almost two-thirds of GCap, home to Classic FM and London's Capital, is controlled by five investors: Schroders, Fidelity, Daily Mail & General Trust, Standard Life and Millgate Capital.
Steve Liechti at Ingenioius Securites commented: "The ball is now firmly in GCap's court and we believe that the management will find it difficult to reject this bid as easily as the 202p offer last week in light of the company's lacklustre strategic review."
Global Radio said: "GCap faces considerable challenges given the current conditions in the radio, advertising and stock markets. The final proposal offers cash and certain value today compared with the inherent execution risk in GCap's strategy."
GCap has previously rejected two Global Radio bids and chief executive Fru Hazlitt was keen to stave off its advances.
Global Radio formed in 2007 is fronted by ITV boss Charles Allen.
(DS/JM)