Savanta Owner Next 15 No Longer Buying M&C Saatchi

Ad agency network M&C Saatchi looks set to remain independent, after a court session failed to get sufficient shareholder approval for Next 15's bid. The move was effectively blocked by investment vehicle ADV, whose own rival bid had earlier failed to find favour with the Saatchi Directors.

Next 15, the owner of data and insights group Savanta, first announced an offer for the ad company in May, with a proposed payment in cash and shares equivalent to c.£310m - this followed the rejection of an earlier £253.6m takeover offer from M&C's biggest investor Vin Murria (pictured), Chair of AdvancedAdvT (ADV), which the board described as 'derisory'. Despite initial enthusiasm for the Next 15 bid, the latter's own share price then dropped, lowering the value of the bid, and after a revised and higher offer from ADV in June, M&C's Directors wrote to shareholders recommending rejection of both bids, while noting that if independence was no longer an option, they preferred Next 15's.

At a Reconvened Court Meeting today the Scheme was not approved by the requisite majorities of Shareholders: a proposed M&C Saatchi Reconvened General Meeting will therefore not go ahead, and Next 15 clarified that 'the Scheme has lapsed and the acquisition of M&C Saatchi plc by Next 15 has terminated'. The outcome of the Court Meeting was not a surprise as ADV and Vin Murria had already stated their intentions to vote their respective shareholdings in M&C Saatchi against the Next 15 Scheme.

Next 15 had declined to increase its offer, underlining that it 'will always maintain pricing discipline when pursuing its M&A strategy, which may result in certain transactions not proceeding'. Its Board noted today that they remain 'highly confident' in the group's future prospects, with three strong trading quarters already this year.

Web sites are at www.advancedadvt.com , www.mcsaatchiplc.com and www.next15.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.