GCap Media has rejected an "indicative and conditional" takeover bid from rival Global Radio, it has emerged.
The Classic FM and Capital owner told the markets this morning it had knocked back an offer of 190p per share.
"The indicative proposal was rejected on the basis that the board believed that it significantly undervalued the company," a GCap statement said.
"There can be no certainty that any offer will be made nor as to the terms of which any offer might be made."
Global Radio, which owns stations including Galaxy, Heart and LBC, confirmed that its takeover approach had been turned down.
A statement explained: "Global Radio is currently considering its position."
But the group said the announcement did not represent a "firm intention to make an offer for GCap, and that there is no certainty that any offer will be made".
Shares at GCap, the UK's largest commercial radio company, were up by almost 50 per cent today on the back of the bid confirmation.
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