Capital Radio sell-off
Thursday 06 June 1996
The disposal, being arranged by Goldman Sachs and Cazenove, could revive speculation that the radio group is ripe for takeover, analysts said last night. The sale ends a five-year relationship between Capital and Havas, the French media giant, which intends to concentrate on investment opportunities on the Continent, particularly in pay-TV.
It bought the shares for 180p each in 1991, as a "strategic" holding in UK radio, and will make close to 3.5 times its money, subject to deal costs.
Capital Radio has long been a target of takeover speculation, due to changes in the Government's attitude toward cross-media ownership and the rapid growth of commercial radio in the past three years.
The company runs two popular London radio stations - Capital AM and FM - and plans to expand further in the UK and overseas. Commercial radio is the fatest-growing medium in the UK, and accounts for about 4 per cent of total advertising spend.
Goldman Sachs and Cazenove plan to begin the bookbuilding exercise this week, closing 13 June. It is expected that the shares will receive wide distribution.
However, depending on the price fetched for the stake, analysts expected Capital to attract renewed interest in the camps of predators. Leading the list of potential buyers is Associated Newspapers.
- 1 Liam Gallagher brands Kanye West 'utter s**t' during BRIT Awards performance
- 2 Isis burns thousands of books and rare manuscripts from Mosul's libraries
- 3 People who sleep more than eight hours are more likely to have a stroke, research shows
- 4 Kanye West climbs on table at Nando's to crowd chants of 'Yeezus' before Brit Awards 2015 performance of 'All Day'
- 5 New theory could prove how life began and disprove God
Oscars 2015: Birdman beats Boyhood as Eddie Redmayne and Patricia Arquette win big - as it happened
New theory could prove how life began and disprove God
Half of Ukip voters say they are prejudiced against people of other races
'Cash for access' scandal: Sir Malcolm Rifkind says 'unrealistic' for MPs to live on £67,000 salary
Aqsa Mahmood branded a 'disgrace' by her parents after claims she recruited three UK girls flying to Middle East
This is what it's like to be dead, according to a guy who died for a bit
iJobs Money & Business
£17000 - £25000 per annum: Recruitment Genius: An opportunity to join this new...
£18000 - £21000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...
£36000 - £44000 per annum: Recruitment Genius: Encouraging more businesses to ...