GCap sale may be referred to Competition Commission
06/03/2008
Global Radio's offer for UK listed radio group GCap will probably be referred to the Competition Commission for disposals, but this should not prevent the deal from going ahead.If the deal goes through, Global may have to sell radio stations in London and Birmingham.Overlaps between the stations include Global's Heart 106.2 and GCap's Capital and XFM in London; and Global's 100.7 Heart FM and Galaxy, which compete with GCap's BRMB in Birmingham.Global increased its offer to 225p per share recently. GCap has since agreed to open its books.GCap's board is concerned that the UK takeover rules would mean the offer lapsing if the deal is referred to the Competition Commission. The board want any conditions created out of this to be kept to a minimum.A decision has not yet been made as to the purchase of GCap.
