SRH makes £116m offer for Border

Border Television, the radio broadcaster and ITV franchise for the Scottish-English border yesterday became the latest media group to be put into play when Scottish Radio Holdings launched an unsolicited £116m all stock offer.

Border rejected the bid, saying it undervalued its television franchise and radio business. The company also said it has received approaches from rival media groups aiming to build their radio operations. John Bowman, SRH's finance director said: "In the past when we talked to Border they've stopped the conversation, in our view prematurely, and stressed their wish to remain independent. Given the way the media sector is going, we think it's time for Border to consider our deal. If you examine the map it makes a lot of sense."

Yesterday Border stock leapt 19 per cent to 1075p, padding Friday's 33 per cent rise after SRH, whose interests span radio, newspapers and billboards, confirmed its interest in a buyout. The price is a penny below the nominal value of 10 new SRH shares for every 17 Border shares. Shareholders can choose a cash alternative of 1025p per share or a mixture of cash and stock.

SRH stock which has risen 50 per cent since December slipped 20p to 1810p.