Global Radio is expected to be given at least until the end of this week to make a firm offer for GCap Media, Times Online can reveal.

It is understood Global Radio, that owns Heart 106.2, is attempting to resolve issues over the payouts of outgoing executives, GCap's headcount and obtaining details on GCap's two pension funds, as opposed to any problems with funding the £371 million deal.

It has emerged that GCap Media is willing to ask the Takeover Panel to extend Global Radio's deadline, previously set for 5pm on 26 March, until the end of this week, following a request from Global Radio.

An announcement could be made by GCap as early as tomorrow morning. While Global would prefer an extension until April 2, it is willing to compromse on a extra couple of days.

Global Media is understood to be financing two thirds of its £371 million bid through private backers, with the remaining sum expected from HBOS, the British bank that last week was the subject of rumours that it was facing funding problems.

The Bank of England was forced to issue an unprecedented denial that HBOS, owner of Halifax, the UK's largest mortgage lender, was in financial difficulties while the Financial Services Authority, the City watchdog, started an investigation into possible market abuse by short-sellers, who can make millions in profits from falling share prices.

It is understood that financing is "not the issue" and Global Media needs more time for due diligence.

One source said: "The work on the financing is not the main focus of our work. It is other matters but none of them are very substantial", adding Global is "just a bit behind in terms of workflow".

Shares in GCap, which owns Capital 95.8 and Classic FM, were yesterday up 1.75p at 200p. Global Media is offering 225p-a-share cash for the group.

The private investors putting up funding for Global Media's bid include J.P. McManus and John Magnier, the Irish racing tycoons, as well as Dermot Desmond, the financier, and Michael Tabor, the father of Ashley Tabor, the Global chief executive.

Global Media and GCap Media declined to comment.

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