Cost cutting and stiff competition are pushing radio firms together

Emap, which owns 27% of Scottish Radio as well as the Magic and Kiss radio networks, had offered 1,040 pence for each of the broadcaster's shares.

Scottish Radio rose 14% to 992.5 pence, while Emap shares dipped 0.6%.

Emap's bid came after a law change let companies control a larger chunk of the market, prompting attempts to merge.

Safety in numbers

The UK's largest commercial radio station GCap was formed earlier this year following the merger of Capital Radio and GWR.

It suggests we are at a standoff Simon Baker, SG Securities Check Scottish Radio Holdings' share price

Investment firm 3i, meanwhile, has been trying to buy the Virgin Radio station.

Emap's bid valued the Scottish Radio at about �374.1m, but the company "declined to entertain an offer on those terms", Emap said.

Scottish Radio said in May that it may not accept an offer from Emap and declined to comment further on Wednesday.

"It looks as though 1,040p is the line in the sand," Simon Baker, an analyst at SG Securities said. "It suggests we're at a standoff."

While many investors are betting that a higher offer may now be on the cards, Emap was keen to point out that it may table a lower bid should market conditions change.

We "will continue to review the situation and, in the meantime, reserve the right to make an offer below 1,040p", the company said.