Shares in BRMB radio owner GCap Media surged yesterday amid speculation it could be a £700 million target for European buyout specialist Cinven.
The move came after reports the private equity firm was considering a bid for GCap.
The £725 million deal saw GCap take control of more than 100 radio stations including, in the Midlands, BRMB, Capital Gold, Beacon, Wyvern, Mercia and Trent.
GCap and Cinven declined to comment, but shares in GCap jumped 35p to 343.25p in early trade. But by midafternoon the surge had steadied to an increase of 25p to 333.25p.
The company also warned of further job cuts as it revealed cost savings from the merger had soared from £7.5 million to £25 million.