Active Value has refused to accept defeat in its attempt to scupper WPP’s bid for Cordiant despite the decision of two prominent executives to withdraw their candidacy for places on the board.
Richard Wheatly, the ex-Jazz FM chief, and Stephen Davidson, a former WestLB Panmure executive have announced that they will no longer be standing for election as chairman and finance director respectively. The pair and an unknown agency boss, who was to have stood for CEO, were being lined up to replace the existing management team.
Despite this development, Active Value still intends to propose an alternative to WPP’s takeover plan, which values Cordiant at just £10 million (see WPP Seals £266m Cordiant Takeover).
The investment fund said in a statement that it was considering “a number of options with its financial and legal advisers with a view to recovering the substantial loss of value faced by shareholders if WPP’s proposed recommended acquisition of Cordiant by way of scheme of arrangement is approved.”
The WPP offer will be put to the vote next Wednesday and Active Value, with its 29% stake in Cordiant, has the power to block the deal. However, there is then the very real possibility that Cordiant could go into administration leaving shareholders with nothing.
Active Value has already failed to get Publicis, the French advertising group, to back a change of control (see Active Value And Publicis In Talks On Cordiant) and its options are limited now that Cordiant has been delisted from the LSE (see WPP Closes In On Cordiant, Shares Delisted).
WPP has therefore called on the fund to drop its opposition to the takeover which it believes to be in the best interests of shareholders.
