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
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.’