Cordiant Completes Scholz Sale as Shares Plummet 25%

10 June 2003

Good news and bad for Cordiant Communications, the debt-beset agency holding group currently struggling to raise cash through asset sales while it seeks a trade buyer.

First the good news.

Cordiant announced Monday it had finally sold its 77.3% stake in German agency group Scholz & Friends, realizing £15.8 million ($26.09m; €22.28m). The buyer was Scholz’s management team together with venture capital firm Electra European Fund LP which holds the controlling interest.

And now the bad news. Or, more precisely, lack of news.

The markets had been waiting with bated breath for a statement Monday following weekend reports that WPP Group was poised to make £210m offer for Cordiant [WAMN: 09-Jun-03].

The silence, alas, was deafening. Monday came and went with no word from either side – precipitating Cordiant’s stock price into freefall and shedding 25% of its already shrunken value. Shares closed at £0.0525, equating to a market value of under £22m.

At 08.12 this morning, shares had dipped further to £0.0505.

Data sourced from: Times Online (UK); additional content by WARC staff