Cordiant Committed To Buyout Strategy

The troubled advertising group said in a statement yesterday that discussions with clients were at an ‘advanced stage’ and there was consensus over the need to find a suitable buyer. Advertising giants WPP and Publicis are believed to be among the interested parties (see Sorrell Indicates Interest In Cordiant).

Cordiant was responding to moves by its leading shareholder Active Value to call an extraordinary general meeting. The fund management group, which owns 14.1% of Cordiant, wants to replace the existing board and is willing to plow up to £40 million into the company.

Active Value has the support of German bank WestLB, which yesterday met representatives of Cordiant’s leaders to debate the proposals.

“The board continues to advance its discussions with various parties and is seeking to bring them to a conclusion in the very near future in the best interests of the stakeholders of the group and its clients,” said Cordiant in its statement.

Following the loss of a major account in April, Cordiant embarked on a disposal programme and expects shortly to announce the sale of German agency Scholz & Friends and UK-based PR firm FD International (see Cordiant Completes Sale Of Australian Assets).

Shares in the company were down 0.75p at 7p in late-morning trading.