The French advertising group Publicis has moved to refute speculation that it plans to make a takeover attempt for Cordiant Communications.
The company has a long held interest in Cordiant’s 25% shareholding in ZenithOptimedia and made a bid for the parent group last month (see
Cordiant Shareholder Rules Out Deal With WPP). However, it lost out to Martin’s Sorrell’s WPP which agreed to pay £10 million for Cordiant and take on the company’s £255 million debt (see
WPP Seals £266m Cordiant Takeover).
The deal will be put to shareholders on July 23 but a spate of trading has complicated the situation and it has been suggested that Publicis is plotting, with the help of prominent investors, to take control of Cordiant.
In the last month, Cordiant’s leading shareholder Active Value has increased its stake in the company to almost 29% and the Syrian businesswoman Nahed Ojjeh has bought a 10.75% share (see City News).
The Paris-based billionairess is the subject of a takeover panel investigation as she failed to disclose her dealings in a prompt fashion. Ojjeh also has a 1% share in Publicis and the panel is looking into whether there has been collusion between parties to control Cordiant.
In a statement today, Publicis said it had rejected proposals from Active Value and emphasised that it knew nothing of Mrs Ojjeh’s motives in respect of Cordiant.
“Publicis Groupe has no intention to participate either directly or indirectly in any possible attempt to gain control of Cordiant,” the statement said. The company said that its only concern is the ZenithOptimedia shareholding which Sorrell is committed to selling to Publicis.
Shares in Cordiant were up 0.25p at 3.875p at the close of trading today.
