Sharewatch: Cordiant Falls On Deal Concerns

Cordiant Communications was the media sector’s big story once again last week, falling 36.84% week on week after WPP won the battle to take control of the advertising group, with a recommended offer valuing the company’s debt and equity at £266 million (see WPP Seals £266m Cordiant Takeover). However, both groups will be watching today to see if Cordiant’s largest shareholder, Active Value, moves to block the deal between the two companies.

Carlton was the sector’s biggest riser, up 8.12%, despite the Competition Commission’s decision to extend its investigation into their proposed merger with Granada (see Competition Commission Delays Verdict On ITV Merger).

Elsewhere, the Communications Bill remained in focus and opposition from the House of Lords and cross-party support for Lord Puttnam’s ‘Murdoch’ amendment is believed to be growing.

Broader market sentiment continued to be bullish and the FTSE 100 surged to its first close above the 4,200 level since September 2002.

The closing prices of media company shares on Friday were: