Active Value, the largest shareholder in beleagured advertising group Cordiant, has denied that it has any plans to launch a joint bid for the company with WPP Group.
WPP is embroiled in a bidding race for control of Cordiant and was the favourite until the last minute intervention of Publicis. The French media giant has teamed up with Cerberus Capital Management, a US investment fund, and is willing to offer lenders 93p in the pound. They plan to put Cordiant into administration and split the assets between them.
According to a report in today’s Financial Times, WPP is prepared to head off Publicis by exploring the possibility of a tie-up with Active Value. The investment fund, which has a 16.75% share in Cordiant, had previously announced its intention to replace the management team and reinvest in the company.
In a statement today, a spokesman for Active Value said: “We are still looking for the best way to get value for shareholders and that means keeping Cordiant out of administration. There are no plans currently to launch a joint bid with WPP.”
Shares in Cordiant were stable at 4.75p today, after being suspended yesterday morning pending clarification of the group’s financial situation.
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