Report: UK's GCap, Emap Talked About Radio Merger
June 21, 2007 at 5:46 AM (PT)
The TIMES OF LONDON is reporting that UK radio groups GCAP MEDIA and EMAP discussed a merger of the companies' radio operations before EMAP's CEO TOM MOLONEY exited last month and that GCAP wants to resume the talks.
Any deal would involve only EMAP's radio stations and not the rest of the company, and a sticking point may be GCAP minority shareholder DAILY MAIL AND GENERAL TRUST's unwillingness to have its 14% stake diluted if the deal includes EMAP receiving shares in GCAP.
The paper describes the previous talks as "tentative" and analyst LORNA TILBIAN notes that "with the chief executive’s job at EMAP vacant, [consolidation] will probably be later rather than sooner."