GCap, the listed media group that owns Capital Radio and Classic FM, was under fire from institutional shareholders last night for failing to disclose a bid approach.

Investors accounting for 15 per cent of GCap want to know why it did not tell them about an approach last month from Global Radio, which is understood to have valued the company at almost £300 million.

Under the terms of the approach, first revealed in The Times on Saturday, Global is thought to have offered a premium of 50 per cent on GCap’s share price in mid-December, although this figure is unconfirmed.

“When you see a bid at such a substantial premium, as a shareholder you would want to be contacted before reading about it in the newspaper,” said one institutional investor, who did not want to be named.

While it is believed that GCap did not put the deal to shareholders because the board considered that it undervalued the company, investors are likely to want a detailed explanation and to know exactly what Global Radio was offering.

Global Radio, which owns the radio stations Heart 106.2, Galaxy and LBC, has issued a statement confirming that it recently made an approach to the GCap board, which was subsequently rejected.

While Global is understood to be likely to enter further discussions with GCap, it said that it was “currently considering its position”.

“This announcement does not amount to a firm intention to make an offer for GCap, and there is no certainty that any offer will be made. A further announcement will be made as appropriate,” Global said in the statement.

An announcement from GCap could follow, especially if the radio group’s share price today rises on the news. GCap has so far refused to comment on the bid approach.

GCap, which appointed Fru Hazlitt as chief executive on December 20, days after the approach from Global Radio, is hoping to impress shareholders with a new strategy to transform the struggling group.

The company has come under increasing pressure in recent times from difficult advertising conditions with advertisers choosing the internet over traditional media, and fierce competition in the London market.

It is possible that some shareholders may not put immediate pressure on GCap to do a deal, as they may want to give Ms Hazlitt a chance to turn around the company.

A significant number of institutional investors backed Ms Hazlitt, formerly managing director of GCap London, and chief executive of Virgin Radio, to take the helm when Ralph Bernard, the group’s former chief executive, announced his departure.

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