Local Radio Co. Tells Shareholders To Take Hallwood Bid... Again
May 6, 2009 at 4:49 AM (PT)
Once again, THE LOCAL RADIO COMPANY will recommend to its shareholders that they accept an offer by Chairman ANTHONY GUMBINER's HALLWOOD FINANCIAL LTD. over one by rival bidder UKRD.
After UKRD upped its bid to buy the outstanding shares of U.K. group THE LOCAL RADIO CO. from 2p/share (1.44 million pounds) to 3.25p/share and bought 1.024 million more shares last week, HALLWOOD upped its own bid for the company from 2.5p/share to 3.5p/share, 7.7% more than UKRD's offer. In the first round of bids, a letter from LOCAL RADIO non-executive director JOHN PERRIS urged shareholders to reject the UKRD offer and accept the HALLWOOD bid because it offered more money, a credit facility, and the ability for the company to remain publicly listed.
UKRD owns 14.93% of LOCAL RADIO, while HALLWOOD owns 28.26%. LOCAL RADIO owns six local commercial stations in the U.K.