NEWS: GUARDIAN MEDIA GROUP PLC COULD BID FOR CHRYSALIS PLC'S RADIO DIVISION WITH FUNDS FROM

'AUTO TRADER' SALE by GRANT GODDARD

www.grantgoddard.co.uk February 2007

Guardian Media Group plc [GMG] could mount a bid for Chrysalis plc's radio division, using funds from its forthcoming sale of a stake in its 'Auto Trader' magazine, which is valued in total at between £1.3bn and £1.5bn. Last year, GMG had announced that it would sell a minority stake in Auto Trader to fund "further investment in other group businesses and the pursuit of other opportunities". This week, GMG said it had "recently received further unsolicited approaches from a number of parties interested in acquiring a minority stake in Trader Media Group. Whilst we continue to pursue the IPO [Initial Public Offering] route, which remains at this stage the preferred option, we have decided – given the level of interest that has been expressed – to invite a small number of parties to clarify the precise nature, structure and value of their proposals.” Rumours that a £200m management buyout is under consideration at Chrysalis were discounted by chief executive Richard Huntingford, who said: "A management buyout is not on the agenda at the moment."

[First published in 'The Radio Magazine' as 'GMG To Bid For Chrysalis Radio?', #777, 28 February 2007]

Grant Goddard is a media analyst / radio specialist / radio consultant with thirty years of experience in the broadcasting industry, having held senior management and consultancy roles within the commercial media sector in the United Kingdom, Europe and Asia. Details at http://www.grantgoddard.co.uk

News: Guardian Media Group plc Could Bid For Chrysalis plc's Radio Division With Funds From 'Auto Trader' Sale page 2 ©2007 Grant Goddard

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