Jazz FM looks set to go to the Guardian

LONDON - Guardian Media Group's takeover bid for Jazz FM looks set to succeed after the radio station's largest shareholder Clear Channel agreed to its 180p-a-share bid, which values the company at £41m.

Clear Channel had been holding out for higher 220p-a-share offer for its 30.9% stake, but no such offer was forthcoming. Its stake, combined with GMG's existing 18.5% stake in Jazz FM as well as Clear Channel executive director Roger Parry's 1.1% stake, means GMG now has 50.5% acceptance for its bid.

There is one stumbling block left to tackle, however, as Jazz FM's largest institutional shareholder said it would hold out against the bid. Herald Investment Management owns a 7.7% stake in the company and is reported to be unhappy with the 180p offer price.

Herald's managing director Katie Potts has told The Independent: "I'd very much like to see if we can't keep our stake, as long as some of the others do."

If GMG is successful, it will delist Jazz FM. The radio group's board could meet as early as today to consider its options.

Shares in Jazz FM closed down by 3p yesterday at 179p. There had been no change when the market opened this morning.

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