Although a number of purchase offers for beleaguered Cordiant Communications are piled on its boardroom table, the London-headquartered parent of Bates Worldwide and 141 Communications admitted Monday that all value the group at below its current share price.
Shares closed last Friday at £0.095, valuing Cordiant at a mere £39 million ($62.68m; €54.55m), and took a further fall after Monday's revelation that the offers were miserly. However, by close of business yesterday the shares recovered slightly to £0.085, although falling again at Tuesday’s opening to £0.065 - and again to £0.050 half-hour later.
In a statement Monday, Cordiant said its board continues to “pursue discussions with various parties”.
Meantime, a shard of good news for the battered company. A major Bates client, Rupert Murdoch’s satellite TV giant BSkyB, denied reports it is set to transfer its £40 million account from Bates to WPP Group’s HHCL/Red Cell network [WAMN: 09-May-03]. “We have no current plans to change the account,” said a BSkyB spokesperson.
Data sourced from: Times Online (UK) and mad.co.uk; additional content by WARC staff