Talk of Publicis Takeover Sends Cordiant Shares Up

18 December 2001

Press reports have suggested that Cordiant Communications, owner of the Bates Worldwide network, is in the early stages of negotiations with French ad giant Publicis Groupe about a possible takeover.

The rumours were good enough for investors, with Cordiant’s share price climbing 7.5p to 94.5p. However, Cordiant has since denied the speculation, announcing: “We are not in talks with anyone. It’s business as usual.”

The UK-headquartered group – seen as a prime candidate for takeover in the ever-consolidating ad industry – has issued three profit warnings in the last four months and announced 1,100 redundancies [WAMN: 03-Dec-01].

News sources: The Times (London); CampaignLive (UK)