Sharewatch: WPP Rises On Revised Cordiant Bid
Troubled advertising group Cordiant remained in focus yesterday on reports that WPP may form an alliance with Active Value to usurp an offer for the group from Publicis and Cerberus Capital Management. Cordiant‘s stock was seen stable at 4.75p, after being suspended yesterday morning pending clarification of the group’s financial situation (see Cordiant Shares Suspended Amid Takeover Fight).
Analysts are wary of WPP’s chances of success and believe the fact that Cerberus has pledged to sell Cordiant‘s debt holding to Publicis, may be a key stumbling block of the revised bid. Nevertheless the market received the news positively and WPP was seen up 1.49%.
The US stock market closed at its highest level in almost a year yesterday, with the S&P 500 index closing more than 2% higher than the previous day. The news will give further weight to bullish sentiment in the market, suggesting that faith in the US economy may finally be returning.
The closing prices of media company shares on Monday were:
