Cordiant Communications opened strongly on the London Stock Exchange following reports that the ailing advertising group is on the verge of offloading two major assets in a bid to alleviate crippling debts.
The Independent On Sunday claimed that Cordiant is completing the formalities pertaining to the sale of PR consultancy Financial Dynamics and Australian ad agency George Patterson Bates.
Financial Dynamics has been on the market since February when the scale of Cordiant’s plight became common knowledge. A management buyout has been mooted and it is believed that the business will pass to a team backed by venture capitalists Advent International for the sum of £25 million.
In the meantime, Pacific Equity Partners has agreed to pay £25.4 million for George Patterson Bates although Cordiant is set to retain a 20% stake.
Further disposals seem inevitable as Cordiant has debts of more than £200 million and is in the process of much-needed consolidation. The company’s 25% stake in Zenith is a prime target for Publicis, the majority shareholder, and a deal is understood to be in the pipeline.
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