Emap scoops up 22 radio stations

KISS FM and Magic broadcaster Emap today took over another 22 radio stations with a recommended £391m bid for Scottish Radio Holdings. Two of its main rivals meanwhile warned that advertising revenues still look weak.

Emap has won agreement from the SRH board by raising its offer from 1040p a share to 1088p. It bought a 27% stake from SMG 18 months ago at 930p. The average price will be 1045p.

The deal covers Radio Forth, Radio Clyde, Belfast's Downtown, two Vibe stations in England and Today FM in the Republic of Ireland. Emap has agreed to sell on SRH's 45 regional newspapers to Johnston Press for £155m.

Emap chief executive Tom Moloney, said: 'This is a very impor tant step in the inevitable consolidation of radio. We now reach all major conurbations and, although we may not have the geographical spread of GCap, we have the highest-quality stations.'

He wants to keep SRH's management, expects to make annual savings of £5m within three years and said the deal would immediately improve earnings.

GCap, formed by the merger of Capital Radio and GWR in May, and Chrysalis, owner of the Heart and Galaxy stations, both said ad sales have been hit by the slowdown in consumer spending.

GCap said May ad revenues dived 14%, while Chrysalis suffered a 14.5% fall between March and May. Both said the market was very short-term as regards current and forward bookings.

Chrysalis added that its book publishing arm's performance has been hit by lower High Street spending.

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