Longwave goodbye

5 March 2008 By John Zhu

The acquisitive Global Radio is close to buying UK s largest commercial radio broadcaster, which is reeling from a bad industry and a foolish bet on digital radio. At £371m, Global is paying up. It might have done better to look to the technological future internet radio.

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Global Radio made a final offer of 225p a share for GCap Media on March 4, valuing GCap at around £371m ($750m). GCap has agreed to start negotiations with Global with the Takeover Panel extending its "put up or shut up" deadline to March 26.

Fru Hazlitt, GCap media's chief executive, announced a radical package of reforms on February 11 that included the closure of digitalonly radio stations and the disposal of its 63% stake in the Digital One radio multiplex.

GCap had previously rejected a 202p offer from Global on February 29, as well as an initial indicative 190p offer made in December 2007.

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