In the run up to the announcement that Global Radio will be acquiring GCap Media, a number of institutional shareholders had reservations whether the deal would be agreed. Some couldn't take the pressure and sold large stakes late on Friday. And they had every right to be cautious. Last week a number of other deals — from Punch Taverns to Mapeley — fell through.

Global continued to insist that the deal was on track and financing was not an issue. Sources said at the time that the deal would be two thirds financed by Global’s existing investors. However, in a statement released late last night, Global revealed that its investors will provide three quarters of funding, with the remainder an £84 million loan from HBOS and Bank of Ireland.

So, did the banks decrease the amount they were prepared to loan Global? That would appear to be the implication.

But Charles Allen and team have cleared the first hurdle of getting the deal agreed. All the same, competition issues shouldn’t be underestimated. The combined group will have a dominant position in London, with stations including Capital 95.8, Heart 106.2, Xfm and Choice. A Competition investigation is expected and Global could arrange to sell-off stations before any examination.

Advertisers will play a key role. They are likely to welcome the deal, as it creates a strong competitor to the BBC and a more interesting proposition for media buyers. However, Global must also reassure that its increased pricing power is not at their expense.

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