M&C Saatchi U-turns on Next Fifteen bid
M&C saatchi pulled its support for a takeover bid by communications group next Fifteen after the value of its offer collapsed.
The advertising firm – famous for designing the iconic new labour new Danger poster ahead of the 1997 election – initially backed an offer from its rival made up of cash and shares, which valued it last month at 247.2p per share, or £310m.
but after a 29.7pc decline in next Fifteen’s shares – the firm had offered some of its own stock as part of the bid – the deal now values M&C at just 189p per share, or £231m.
M&C said it no longer found the offer ‘fair and reasonable’ and has urged shareholders to not back it.
it gave a boost to tech entrepreneur Vin Murria, who has been circling the ad agency since January, when she picked up a 22.3pc stake through her investment vehicle Advanced Advt.
Murria has since tabled four offers including a hostile bid last month after she was repeatedly rebuffed by its board. her latest bid values M&C at 209.4p per share, or £256m.
laying out the details of the offer on Tuesday, Murria said her bid for M&C is ‘notably higher’ than next Fifteen’s.
Murria said shareholders have a choice between her higher offer and next Fifteen’s bid. Tensions between her and other directors are high after she was ousted this month from her position as deputy chairman and kicked off the board.
M&C also doubled down on its rejection of Murria’s offer, saying it considered both her bid and next Fifteen’s to be worse options than going it alone.
it also warned that Murria’s stake gives her ‘significant influence’ over the business, adding she could be a ‘significant distraction’ for M&C as a stand-alone business.
it said her 22.3pc stake meant it could not be certain how the business would perform.
M&C fears an exodus of talent if Murria gains control, with former executives joining or setting up rivals, and poaching clients.
M&C was founded in 1995 by brothers Maurice and Charles saatchi after they were ousted from saatchi & saatchi by an American activist.
The brothers’ clients have included the Conservative and labour parties, burberry, Apple and chocolatier lindt.
M&C shares fell 6.8pc, or 12p, to 165p.