The management of Scholz & Friends, Germany’s largest advertising group, is preparing to bid for the business in a bid to extricate it from the Cordiant Communications network.
A report in today’s
Financial Times claims that the managers have the backing of private equity groups to buy out Cordiant’s 77% stake in the agency which is estimated to be worth €18.2 million.
Cordiant chief executive David Hearn is considering the sale of assets in order to reduce a debt burden of more than £200 million (see Market Downturn Takes Toll On Cordiant). The PR agency Financial Dynamics is set to be sold to its management and Cordiant is expected to issue a sales brochure this week notifying interested parties that Scholz & Friends is on the market.
The firm has already confirmed that it is in the process of selling Australia’s largest advertising agency, George Patterson Bates (see Cordiant Prepares To Sell Australian Assets).
