New York-headquartered Grey Global Group yesterday saw its stock hit an all-time high of $760 per share before dropping to $723 (a 7.6% overall rise), following news that investment firm Bain Capital had acquired a 5.6% stake in the agency network.
Bain division Brookside Capital Partners Fund purchased 57,749 shares in Grey. In a report filed with the Securities and Exchange Commission on Monday, it emerged that Bain’s founder W Mitt Romney is listed as president, ceo, sole director and exclusive shareholder of Brookside.
This is not Bain’s first foray into the world of advertising – it has also invested in companies such as DoubleClick, MediaPlex and Hook Media. Grey remained tight-lipped regarding the transaction, saying that it does not comment on issues regarding its stock.
News source: Advertising Age - Daily Deadline