LONDON — After a fierce bidding war, Capital Radio has agreed to buy Border TV, one of the smallest regional stations in the ITV network, for £146 million ($232 million).
Capital, the U.K.’s largest commercial radio group, beat out rival suitors including Scottish Radio Holdings and Chrysalis. All of them were attracted not by Border’s small TV business, but by the ITV minnow’s collection of radio stations.
Although Capital’s all-stock offer valued Border at $232 million, its share price fell on news of the deal, reducing the value by almost 10%.
Scottish Radio is considering a counteroffer.
Border is the ITV broadcaster for the sparsely populated area on either side of the border between England and Scotland.