The rival firm circling Capital Radio broadcaster GCap Media has tabled a new takeover proposal worth £371 million.
Heart and Galaxy owner Global Radio’s latest proposal - 225p a share - is an 11% improvement on its previous offer and comes a day before a Takeover Panel deadline for it to declare whether it will make a formal move for GCap.
GCap rejected a 202p a share proposal last week as it said it would be able to create more value through a turnaround plan recently announced by new chief executive Fru Hazlitt.
Global called on GCap shareholders to press the company’s board to accept the offer and request the extension of the Takeover Panel deadline to April 2.
It said its final proposal offered "substantially greater" value than could be achieved by GCap on a standalone basis, even if the cost savings and initiatives outlined by Ms Hazlitt were achieved in full.
The group added: "In Global Radio’s view, GCap faces considerable challenges given the current conditions in the radio, advertising and stock markets.
"The final proposal offers cash and certain value today compared with the inherent execution risk in GCap’s strategy."
Roddy Davidson, an analyst at Altium Securities, said GCap shareholders should accept the offer. "In our view this represents a compelling offer at a time when the company and the radio industry face cyclical and structural challenges."
Global - backed by Irish racing tycoons John Magnier and JP McManus - has plans to become a powerful force in commercial radio in the UK after snapping up Chrysalis Group’s radio stations last year in a £170 million deal.
The company was created specifically as an investment vehicle to buy the radio stations and is looking to use Chrysalis Radio - parent of Heart and Galaxy - as a platform for further expansion in the sector.
It is also said to be in the running to acquire SMG’s Virgin Radio.
GCap, which has around 30% of the total commercial radio industry, was formed from the merger of Capital Radio and GWR in 2005.
Ms Hazlitt, the former Virgin Radio boss, has vowed to boost advertising at Capital, by ditching its previous policy of broadcasting no more than two adverts in a row.
The group-wide plans will also see cost savings of £8.8 million a year achieved through disposals and restructuring, as well as profit margins of up to 19% achieved by March 2010.
Ms Hazlitt’s shake-up has been seen as a defence strategy against a takeover by Global Radio.