According to a report in The Sunday Times, sources at the weekend were indicating that Cinven has been "actively looking" at a takeover approach for GCap, which would mark the private equity firm's first foray into the UK radio industry.
However, the report emphasises that no approach has yet been made and that there was no certainty that Cinven would go ahead with an offer for GCap.
GCap is the UK's largest commercial radio group. It was formed five months ago through the merger of Capital Radio and GWR. As well as Classic FM, GCap also owns Capital FM and Xfm.
Last month, the group underwent a management reshuffle. Chief executive David Mansfield stepped down after taking the company through the merger and was replaced by former GWR executive chairman Ralph Bernard.
Since then, the firm has announced that commercial director Linda Smith and operations director Paul Davies were leaving the company. They are being replaced by GCap managing director of national sales Duncan George and former GWR group development director Steve Orchard.
The same month, GCap revealed in a trading update that third-quarter ad revenues are expected to deteriorate by 8% year on year. The radio group was not upbeat about the fourth quarter, saying that visibility remained limited and it remained cautious. The board has decided it can achieve annualised cost savings of £25m from the merger, significantly greater than the £7.5m previously expected.
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