British commercial television and radio group Border Television said yesterday that a £116 million sterling (€188.5 million) takeover bid from Scottish Radio Holdings significantly undervalued its business.

Border TV also said in a statement it had been approached by a number of other parties and advised shareholders to take no action on the hostile bid unveiled earlier yesterday by Scottish Radio, which has substantial Irish media interests. Border TV noted that it was the last independent ITV company in Britain and one of the fastest-growing radio companies in the UK, with many opportunities to develop the business.

Scottish Radio said it would offer 10 new shares for every 17 Border shares, valuing each Border share at around £10.76, with a cash alternative of £10.25 per share. Border shares jumped over 19 per cent to end at £10.75.

Scottish Radio is in the process of buying Ireland on Sunday, has a shareholding in Today FM and owns Morton's Newspapers in Northern Ireland.

Talks between Scottish Radio and Border TV fell apart two years ago after the Glasgow-based group laid an offer of £4 per share on the table. Scottish Radio's chief executive, Mr Richard Findlay, said he had been approaching the Carlisle-based TV company ever since.

Scottish Radio said it would draw Border TV's radio business into its radio fold and would develop the television business, despite its lack of television experience. "Border TV has been tilling the radio soil for a number of years and we believe we can move that agenda along and increase audience and revenues. The television side can also be improved with some investment," Mr Findlay said.

Scottish Radio, which has bought 14 companies in the last five years, said its acquisitions would not stop at Border TV. "There's bags of headroom for us to expand. We've looking for acquisitions all the time," Mr Findlay said.