Chiltern looks for friendly suitor
Wednesday 31 May 1995
Chiltern Radio management were still scrambling to line up a friendly suitor last night in their efforts to ward off the hostile bid by GWR, the regional radio holding company.
They were said to be reviewing all their options before issuing a formal statement later this week on the unwanted pounds 23m bid.
Options included canvassing for a "white knight" who could outbid GWR while allowing it to remain involved with the company after a takeover.
Although GWR has refused to comment, the bidder is thought unlikely to retain the current management structure at Chiltern since it already operates 20 stations with a streamlined central management.
Chiltern has nine regional radio stations in Britain, in areas that made the fit with GWR logical, analysts said.
Last year Chiltern recommended a 242p cash bid by CLT, the Luxembourg broadcaster, but it was turned down by several large shareholders.
GWR's offer is worth about 328p a share at last night's close, but the Chiltern management believe that this undervalues the company.
Analysts said yesterday that accepting one bid for 242p and subsequently rejecting another for 328p would be difficult to justify.
Sources close to Chiltern claimed that the Government's decision to lift radio ownership restrictions had increased the company's value.
They also pointed out that the earlier CLT bid had been all cash. GWR is now offering 2.38 new shares for every one Chiltern share.
Sources close to GWR suggested last night that the bidder was increasingly confident of success. Its support included an irrevocable commitment from Capital Radio to tender its 20 per cent stake and a "comfort letter" from the Daily Mail and European Management Associates covering a further 29.9 per cent.
Chiltern closed yesterday at 316p, up 8p on the day. GWR was unchanged at 138p.
- 1 Student jailed for hacking University of Birmingham computers to improve his grades
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 The most powerful passports in the world
Student jailed for hacking University of Birmingham computers to improve his grades
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as the wait continues for Duchess of Cambridge's second child
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...