Scottish Radio rejects Emap bid

This Is Money13 April 2012

PUBLISHING group Emap today said Scottish Radio Holdings (SRH) had turned down a £374m takeover bid. Emap said the board of the Glasgow-based radio and newspaper group had 'declined to entertain' its 1040p per share offer.

It said it was disappointed at SRH's response to the bid, which it claimed offered full value to SRH shareholders in light of the latter's current performance and future prospects.

Emap, which already owns a 27% stake in SRH, said in March it was interested in buying the remaining shares in SRH. However, it said then that it would not pay a price that ran counter to the interests of its shareholders.

A statement from Emap today said: 'The board of Emap is disappointed by this reaction to a proposal which it believes fully values SRH.

'The board of Emap will continue to review the situation and in the meantime reserves the right to make an offer below 1040p, should a recommendation by the board of SRH for an offer at 1040p not be forthcoming.'

Emap's consumer magazines include Heat, Closer, Zoo, Empire, Arena, Bliss, Match and Yours and its business division publishes titles such as Construction News, New Civil Engineer and Screen International.

The group's broadcasting operations include the radio stations Kiss, Kerrang and Magic, along with television station The Hits. It also owns French TV listings magazines Tele Poche and Tele Star. The company said last month it had seen a good start to the year despite a 22% decline in profits and tough trading in France.

SRH has 45 local weekly newspapers and 22 wholly owned radio stations including Radio Clyde, Radio Borders, Tay FM in Dundee, Cool FM in Northern Ireland, Carlisle CFM Radio, Ireland's Today FM and Southampton-based Wave 105.

It said in January it was on track for a good result in the year after revenues from continuing operations in the first quarter, October to December, rose 11% on a year earlier, despite tough conditions in the national radio market.

Shares in SRH leapt 14% or 122p to 994½p while Emap's stock dipped a penny to 803½p by late morning.

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