GCap, the owner of Capital Radio and Classic FM, admitted for the first time this morning that it has received a takeover approach from Global Media proposing a 190p cash offer. GCap shares soared 52.27 per cent in early trading, up 63.25p to 184.25p.

The group has been under pressure from its shareholders to disclose the terms of the approach, which was first revealed by The Times on Saturday.

GCap said today that it had "recently received and rejected an indicative and conditional proposal from Global Radio regarding a possible offer for GCap at a price of 190p per share in cash that was rejected on the basis that the board believe that it significantly undervalued the company".

Global Radio, which owns radio stations Heart 106.2, Galaxy and LBC, said this morning that it is "currently considering its position".

An offer of 190p would value GCap at around £313 million, compared with its £200 million price tag before the bid was formally confirmed.

One institutional investor, who did not want to be named, told The Times this weekend: “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.”

GCap, which appointed Fru Hazlitt as chief executive on December 20, days after the approach from Global Radio is thought to have been made, 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 the 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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