Bank's strategic review sparks interest in SRH

 

Scottish Radio Holdings shares jumped yesterday as the company's appointment of investment bank Goldman Sachs to head a strategic review began a fresh round of speculative interest in the stock.

The move came days after Scottish Radio was the target of a dawn stock market raid from broadcaster SMG and revived hopes that the radio broadcaster might be forced to put itself up for sale.

Scottish Radio is the second largest regional newspaper publisher in the Republic and also owns Ireland on Sunday and a 22 per cent stake in independent radio station Today FM.

Scottish Radio gained 127p sterling or 8.5 per cent to £16.27 yesterday, extending Friday's 22.2 per cent gain. Earlier it traded as high as £16.71-3/4, its highest since April. In its brief statement, Scottish Radio said it had appointed Goldman to assist in a review of its strategic options and to explore all opportunities to enhance shareholder value.

It gave no further detail, but said a further announcement would be made in due course.

SMG last week bought a 14.9 per cent stake in Scottish Radio.