Active Value, the majority shareholder in Cordiant Communications, this morning again increased its stake in the company. The group purchased an additional 2.5 million shares in Cordiant, taking its holding to 24.5%.
This is just shy of the 25% that Active Value needs to make a blocking attempt on Cordiant’s proposed £266 million takeover by WPP (see
Active Value Ups Cordiant Stake To Block WPP Deal).
Since Cordiant’s board and WPP made the buy-out proposal (see WPP Seals £266m Cordiant Takeover), Active Value has been steadily increasing its shareholding in the group in order to give it more clout in the shareholder meeting that will discuss the WPP deal.
Active Value has offered to inject more cash into Cordiant in order to keep the company independent; under this plan, the current management at Cordiant would be replaced (see Cordiant Shareholder Rules Out Deal With WPP). However, Cordiant’s directors prefer instead to sell the group to WPP.
