GCap rejects raised Global bid

Capital 95.8 owner GCap Media has rejected an increased takeover bid from Global Radio.

The rival, chaired by former ITV boss Charles Allen, upped its previous offer of 190p per share to 202p, valuing GCap at £333m.

GCap said the new offer “significantly” undervalued it given chief executive Fru Hazlitt's recently-unveiled restructuring plans.

Hazlitt came up with the proposals, which included closing two digital-only stations, to avert a takeover by Global.

GCap said in a statement: "(The board) believes that this revised proposal significantly undervalues the company because it does not reflect the value that would be created by implementing the strategy of the new chief executive, Fru Hazlitt."

Analysts said it was unclear if Global would return with a higher bid. Paul Bates, from Charles Stanley, told the Financial Times: "GCap may be holding out for a little more but this may in fact be Global Radio saying not to expect another offer at the 230p to 250p level."