Guardian bids £41m for Jazz FM

Nick Goodway12 April 2012

THE usually laid-back staff and listeners to Jazz FM received a rude awakening today as their favourite radio station received an unwanted £41m takeover bid from Guardian Media Group.

Chief executive Richard Wheatley, who received the news not long before his usual 'Smooth Jazz through the Night' graveyard shift on Monday morning, was expected to tell shareholders to take no action.

But GMG, which owns radio licences in Wales, Scotland and Yorkshire as well as The Guardian and Observer newspapers, has already won the backing of shareholders owning 50.5% of the shares.

It already owned 18.5% and has acceptances from 30.9% shareholder Clear Channel International and its chief executive Roger Parry - also a non-executive director of Jazz FM and who owns a 1.1% stake.

GMG is offering 180p cash a share, a 29% premium to last Friday's closing price.

Today Jazz FM shares jumped 38 1/2p to 178p. The acceptances are irrevocable unless the station receives a bid of at least 220p a share in the next 10 days.

Paul Myners, chairman of GMG, said: 'We will give the Jazz FM business the economies of scale it needs to compete effectively as the UK radio industry is consolidating.'

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