Plans to abandon digital radio technology by GCap Media, Britain’s largest commercial radio group, have been put on ice because of a takeover bid for the owner of Capital 95.8.

GCap Media, which is the subject of a takeover approach from Global Radio, last month sent shockwaves through the industry with the announcement of plans to stand down from the Digital Audio Broadcasting (DAB) platform as part of its defence against possible takeover.

It is now understood that the owner of Capital 95.8 and Classic FM, has been forced to hold off on the sale of its stake in Digital One, which it had planned to sell to Arqiva, while takeover talks continue with Global. The sale of the Digital One stake was central to GCap’s planned shift away from DAB.

GCap said in its strategy statement on February 11 that it had “reached an agreement in principle to sell our shareholding in Digital One to Arqiva” for a nominal sum.

However, it is understood that the sale of the asset has raised concerns from the Takeover Panel.

The sale could affect the future strategy of a potential buyer of the group. In such a scenario, the sale of assets during a potential takeover are often subject to buyer consent.

It is understood that the potential-buyer, Global Radio, has told the Takeover Panel that it is not happy for a sale of Digital One to take place until a decision has been made on whether or not it will acquire GCap.

This is more than just a Takeover Panel technicality.

Global’s request for the Digital One sale to be postponed is an important one, as it suggests that the Heart 106.2owner could have a greater commitment to DAB than GCap.

As Britain’s largest commercial radio operator, GCap’s shift away from DAB and refusal to invest further appeared to signal a bleak future for the platform.

Following its announcement, some of GCap’s radio rivals appeared concerned that the future development of the platform would come under pressure without the backing of Britain’s largest commercial radio player.

Within hours of GCap’s chief executive Fru Hazlitt announcing her plans for DAB on February 11, rival commercial radio groups, the BBC and Channel 4, responded, high lighting their commitment to the medium.

Ms Hazlitt’s plans marked a u-turn in strategy from GCap’s previous management.

Its former chief executive Ralph Bernard was a strong supporter of DAB, investing heavily in the platform and often playing a key part in DAB-focused industry events.

Mr Bernard often spoke about how he wanted a clear switch-off date for analogue radio, suggesting this should happen by 2015.

Other small asset disposals mentioned by GCap in its February 11 statement are not understood to have raised the same concerns from the buyer. GCap is in talks to sell its three regional Xfm stations and is also understood to have held talks with a number of parties interested in Planet Rock.

A number of shareholders have publicly backed Global’s 225p final proposal for GCap and the group’s are currently in talks.

It is widely thought that a deal will be agreed.

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