Global Radio increases bid for GCap

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Global Radio has said that it was now submitting a "Final Proposal" to the board of GCap worth 225 pence per share.

In January Global Radio were told by the UK Takeover Panel that they have to make a firm bid by 5pm on 5 March 2008.

This latest bid by Global Radio represents an 86 per cent premium to the pre-leak share price, and has the support of Global Radio's key equity and debt providers, said Global Radio.

Global Radio said it believed that its Final Proposal offered, "substantially greater value than could be achieved by GCap on a stand alone basis, even if the planned cost savings and initiatives outlined in GCap's strategy announcement of 11 February 2008 can be achieved in full."

The company 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 said that its board was considering the new offer and would make an announcement in due course. GCap owns radio stations such as Capital, Classic Gold and Planet Rock.