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Active Value And Unknown Investor Buy Cordiant Shares

Active Value And Unknown Investor Buy Cordiant Shares

Active Value, the UK fund management service and the largest shareholder in Cordiant Communications, has again increased its stake in the group, this time buying 113.4 million shares.

The purchase raises Active Value’s stake in Cordiant to 27.1%, comfortably past the 25% mark at which it has the power to block the proposed takeover of Cordiant by WPP (see Active Value Takes 25% Of Cordiant Shares).

However, WPP has staunchly held its ground over the deal, first taking on £90 million of Cordiant’s debt (see WPP Raises Stakes In Cordiant Tug Of War) and second by refusing to up the ante on its 2.4p per share proposal, irrespective of the potential shareholder block (see WPP Stands Firm On Cordiant Deal).

There are also reports today that an unknown investor has acquired a 2% stake in Cordiant at a price of around 2.8p per share, valuing the company at more than WPP’s offer. It is understood that this investor is not connected to Active Value or any other Cordiant stakeholder.

Cordiant’s shareholders are due to vote on WPP’s offer on 23 July. It is not clear whether Active Value intends to block the deal at this time.

Shares in Cordiant were up 14.6% at 2.75p on the news.

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