Cordiant Communications has been forced to request new terms for its overdraft facility, which currently stands at £274.6 million.
Negotiations with the marketing services group’s bankers mean accounts have not been audited for certain subsidiaries, among them the flagship Bates ad network. However, it hopes to have a revised agreement in place before March’s report of full-year results, which are not expected to make happy reading.
After several profit warnings last year, Cordiant has become the frequent subject of takeover rumours. Such speculation did the rounds again last week after Publicis Groupe sought to raise £372m through the markets – not a million miles from Cordiant’s current market valuation of about £450m [WAMN: 11-Jan-02].
As always, Cordiant denied the gossip.
News source: BrandRepublic (UK)