Cordiant Communications Buys Into German Marketing Group

Cordiant Communications Group (CCG) has announced its acquisition of an 80% stake in German marketing and sales consultancy InterCom Management. An initial consideration is to be met with the issue of 2.34m new CCG shares. A maximum total consideration of DM75m may be payable in new CCG shares depending on InterCom’s financial performance to December 2004.

Michael Bungey, CEO of CCG, said, “The acquisition of InterCom is an important strategic development for CCG in Germany. InterCom will consolidate Bates’ presence in the largest European market and will enable InterCom and Bates to work together to deliver an enhanced portfolio of services to our clients.”

InterCom has 150 employees and offices across Europe. Clients include Skoda, Seat and Unilever. Following the deal the company will operate as a separate operation within CCG interest Bates Europe. The acquisition forms part of CCG’s strategic objective of building its marketing services businesses.

At 11am this morning, shares in Cordiant were up 3½p on Friday’s closing price (see Sharewatch), at £2.58½.

Cordiant Communications Group: 020 7262 4343

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