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Article: Does Sorrell's acquisition suffer discordiant relations? Adland has been waiting to discover the fate of troubled marcoms group Cordiant for what seems like months. Has WPP's Sir Martin Sorrell made a shrewd investment, or is it a turkey? (News Analysis).(Cordiant Communications finds buyer in form of Sir Martin Sorrell's marketing group, WPP)
- Article from:
- Brand Strategy
- Article date:
- July 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In what has seemed like the longest swansong in the history of adland, Cordiant Communications has at last found a buyer in the form of Sir Martin Sorrell's marketing group, WPP. Although there is a possibility that Active Value, a consortium of Cordiant shareholders, might scupper the deal, forcing Cordiant into administration. With the support of 75% of shareholders, the scenario that WPP will absorb much of Cordiant's business is still most likely.
Sorrell expects to acquire the group for 266m [pounds sterling], although the deal which will offer one new share for every 205 old Cordiant ones will value the group's share capital at just 10m [pounds sterling]. ...