WPP Triumphs In Cordiant Battle

The fate of Cordiant Communications has been all but sealed this afternoon, as shareholders voted overwhelmingly in favour of the proposed takeover of the group by WPP.

At an extraordinary general meeting today, shareholders representing 99.2% of the company’s stock voted to proceed with WPP’s £266 million takeover bid.

Only 75% approval was needed for the deal to go through, but there remained a possibility that majority shareholder, Active Value (AV), would block the proposals after weeks of attempting to secure an alternative future for Cordiant.

The saga that played out saw AV gradually increasing its stake in Cordiant to 28.8%, whilst the enigmatic figure of Nahed Ojjeh, a wealthy Syrian investor, built up 10% of her own. At this stage it is unclear just what Ojjeh’s intentions are, although they may emerge at a later meeting today when shareholders discuss AV’s plans to change Cordiant’s senior management.

WPP’s chief executive, Sir Martin Sorrel, had said that if AV voted against the deal, he would put Cordiant into administration; this is an outcome which would have been beneficial to no-one.

Earlier today, Cordiant’s shareholders also approved the £26 million sale of City PR company, Financial Dynamics, to management and equity firm Advent International.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news by visiting the site.