Following Global's 4 March 225p per share offer for GCap, the Takeover Panel gave Global until 5pm on 26 March to seal an agreement to buy GCap.
However, Global Radio, the private equity-backed group headed by Charles Allen, the former ITV chief executive, has requested the deadline is extended until 2 April, giving it an extra week to complete its due diligence of the company.
A Global spokesman said: "The application has been submitted and it relates entirely to time delays in supplying and receiving information."
While GCap supports a short extension of "a couple of extra days", it is strongly against an extension that would take the Global takeover saga into a fourth month.
A source familiar with GCap's plans said: "GCap won't refuse a couple of extra days, but 2 April is pushing it into next week and the company has been in this limbo state for the last three months.
"It has two and half thousand employees wondering what is happening to their jobs and GCap owes it to them not to make them feel like deal fodder."
Paul Bates, a Charles Stanley media analyst, said: "I am surprised that Global still needs more time, as when 225p was proposed at the beginning of March, [Global] indicated that only a limited level of due diligence was needed."
While Global is, according to the GCap source, still likely to complete the takeover, the likelihood of it acquiring Virgin Radio is diminishing, according to observers.
Richard Menzies-Gow, director of media research at Dresdner Kleinwort Wasserstein, said: "Even if Global's pockets were deep enough, I would have thought it had enough on its hands with GCap. Plus, if it acquired Virgin Radio as well, it is more likely to run into local [regulatory] competition problems in London."
The GCap source said: "Global has made it absolutely clear that it has squeezed every drop to get enough money together to buy GCap and that was even the message when it bid at 202p [in February]."
Owner of Talksport, UTV, is now the favourite to acquire Virgin Radio. Current owner SMG is expected to announce the identity of Virgin Radio's new owner when it publishes its interim financial results on 3 April. Virgin Radio's price tag is put at between £60m and £70m.
SMG declined to comment.
However, Global Radio, the private equity-backed group headed by Charles Allen, the former ITV chief executive, has requested the deadline is extended until 2 April, giving it an extra week to complete its due diligence of the company.
A Global spokesman said: "The application has been submitted and it relates entirely to time delays in supplying and receiving information."
While GCap supports a short extension of "a couple of extra days", it is strongly against an extension that would take the Global takeover saga into a fourth month.
A source familiar with GCap's plans said: "GCap won't refuse a couple of extra days, but 2 April is pushing it into next week and the company has been in this limbo state for the last three months.
"It has two and half thousand employees wondering what is happening to their jobs and GCap owes it to them not to make them feel like deal fodder."
Paul Bates, a Charles Stanley media analyst, said: "I am surprised that Global still needs more time, as when 225p was proposed at the beginning of March, [Global] indicated that only a limited level of due diligence was needed."
While Global is, according to the GCap source, still likely to complete the takeover, the likelihood of it acquiring Virgin Radio is diminishing, according to observers.
Richard Menzies-Gow, director of media research at Dresdner Kleinwort Wasserstein, said: "Even if Global's pockets were deep enough, I would have thought it had enough on its hands with GCap. Plus, if it acquired Virgin Radio as well, it is more likely to run into local [regulatory] competition problems in London."
The GCap source said: "Global has made it absolutely clear that it has squeezed every drop to get enough money together to buy GCap and that was even the message when it bid at 202p [in February]."
Owner of Talksport, UTV, is now the favourite to acquire Virgin Radio. Current owner SMG is expected to announce the identity of Virgin Radio's new owner when it publishes its interim financial results on 3 April. Virgin Radio's price tag is put at between £60m and £70m.
SMG declined to comment.
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