Border gives Capital’s offer its official seal of approval

Border Television has officially recommended that its shareholders approve Capital Radio’s pounds 146 million offer for the British commercial radio and TV group.

Border Television has officially recommended that its shareholders

approve Capital Radio’s pounds 146 million offer for the British

commercial radio and TV group.



However, Border is still waiting to see whether Scottish Radio Holdings

will trump Capital’s bid.



Last week SRH announced the withdrawal of the ’no increase’ statement it

made on 11 April. This clears the way for a higher bid than that of the

London-based radio company.



Capital has underlined the seriousness of its intent by signing an

agreement with Granada TV to sell Border’s TV assets to Granada for

pounds 50.5 million should the sale go through - leaving Capital to

manage the fast-growing Century Radio brand.



David Mansfield, the chief executive of Capital, said yesterday that the

agreement showed Capital’s commitment to radio.



The deal should mollify Capital’s shareholders, who were said to be

concerned about the company’s apparent intention to diversify into TV.

The deal should also allay fears that Capital’s pounds 146 million bid

was too high, given the pounds 50.5 million cashback it will receive

from Granada.



A source at Border said the deal with Granada showed Capital

acknowledged that it could not run the TV interests as effectively as

Border - in contrast with SRH, which claimed it could run the TV

interests better than Border’s management.



He said: ’Border TV has run itself for 40 years in a difficult region.’