A leading institutional investor in GCap wants to see Britain's largest commercial radio player enter talks with Global Radio following its £371 million approach.

Global Radio today made a final attempt to acquire GCap Media, sweetening its proposed offer for Britain's largest commercial radio group to 225p per share.

It is understood that leading shareholder Schroders, which has a 16 per cent stake in GCap and voiced its support for GCap's board when it rejected Global's 202p per share approach, is now keen to see discussions between the groups.

Following talks between Global Radio and key GCap shareholders yesterday, the Heart 106.2-owner has decided to make a revised approach for GCap before a put-up or shut-up deadline tomorrow.

GCap issued a statement at 9.30 to acknowledge it had received Global's latest offer.

"The board of GCap Media will consider this proposal and will make a further announcement in due course," it said.

The latest proposal is the third approach Global has made for the Xfm and Classic FM owner since December. The first and second, which were swiftly rejected by the GCap board, were for 190p and 202p. The latest news sent GCap's shares up 27.25p to 215p.

Global said it believes the "final proposal offers substantially greater value than could be achieved by GCap on a standalone basis, even if the planned cost savings and initiatives outlined in GCap's strategy announcement of February 11 can be achieved in full".

Following GCap's rejection of a 202p per share offer for the Capital 95.8 and Classic FM owner last week, Global yesterday held final talks with GCap's major shareholders to assess what price they would accept for Britain's largest commercial radio group. The 225p per share offer is, therefore, understood to have the support of GCap's major shareholders.

Charles Allen, the chairman of Global Radio and the former chief executive of ITV, and Global's chief executive Ashley Tabor needed to gain investor support for a deal ahead of a Takeover Panel deadline tomorrow.

GCap's largest shareholders, which include Daily Mail & General Trust, Fidelity and Schroders, last week appeared to show their support for GCap's management, which last month unveiled a future strategy for the group. Schroders even went on the record to voice its support.

Fru Hazlitt, the chief executive of GCap, believes that her future plans for the group will deliver more value to shareholders than an offer Global Radio. Global Radio's investors are understood to have been divided about how much they should pay for GCap, with some concerned about overpaying.

Global's latest offer is subject to the completion of a due diligence exercise, an extension of the put-up or shut-up deadline to April 2 and the recommendation of the GCap board.

Times Recommends

• Minister in talks with Saudis to protect creditors
• Premier Inn hits back in £29-a-room row
• Bankers hit back at 'populist' bonus supertax