Shareholders in GCap have suggested Global Radio should increase its bid for the company.

GCap investors rejected an offer of 190p per share for the Capital 95.8 and Classic FM owner in December.

Since then GCap management have laid out their proposals to increase profits - mainly by reducing spending on DAB - and have urged shareholders to back their plans instead of a takeover.

Global, which must decide if it will make a new offer by March 5, has also been meeting key shareholders, according to The Times. However, sources said they were still looking for a bid beginning with "at least a two".

It has also been suggested Global needs to make a deal after missing out on buying Emap's radio stations to Bauer. Global Chief executive Ashley Tabor denied the takeover was crucial: "If it doesn’t happen, it doesn’t happen. We’re in no rush."