Bidding War Continues for M&C Saatchi

Investment vehicle AdvancedAdvT [ADV] has increased its offer for ad agency network M&C Saatchi to 209.4p per share, beating the 'final' offer of 198.3p per share made by marcoms consultancy Next 15, the owner of data and insights group Savanta.

Founded in 1995 by brothers Maurice and Charles Saatchi, M&C Saatchi employs more than 2,400 staff across 23 countries, providing access to a global network of brand, data and marketing specialists. Specialisms include brand strategy, architecture and innovation; digital experience design; employer brand proposition; and global trend studies. The company also develops measurable media strategies and offers ad / message targeting.

Last month, Next 15 agreed to acquire M&C Saatchi in a £310m cash and share deal, after the latter company had rejected a £253.6m takeover offer from its biggest investor, Vin Murria (pictured) Chair of ADV, which M&C Saatchi described as 'derisory'. Murria, who owns a 22.3% stake in M&C Saatchi, was then removed from the ad agency's Board.

In a statement made today, Murria said that M&C Saatchi shareholders now have the choice to accept ADV's higher offer, resulting in them owning more than 53.7% of an enlarged M&C Saatchi/ADV group, or a smaller 13.5% of an enlarged Next 15 business. 'We have significant cash and an advanced pipeline of accretive acquisitions for M&C Saatchi. Our final offer has greater potential to deliver shareholders and employees faster growth and significant value creation'.

The M&C Saatchi Board has stated to ADV that it will continue to monitor the impact of volatility in the sector and the relevant share prices of Next 15 and ADV as an 'important consideration with respect to its recommendation of either or neither offer'.

Web sites: www.advancedadvt.com , www.mcsaatchi.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.