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LONDON, Jan 24 (Reuters) - Advertising group M&C Saatchi
has rejected a fresh takeover approach from the
acquisition vehicle of its top shareholder Vin Murria.
Murria's AdvancedAdvT said on Monday that it had
floated two options, one an all-share offer that values each M&C
share at around 220 pence or an alternative structure that
includes some cash and values them at around 200 pence.
It said the paper offer represented a 20.7% increase on its
previous proposal, but that the agency's independent directors
had rejected it late on Sunday.
M&C shares were up 2.5% at 179.5 pence at 0918 GMT.
Founded in 1995 by ad mogul brothers Maurice and Charles
Saatchi, M&C has been recovering from a 2019 accounting scandal
and argues that the offer does not reflect its expected future
growth. It has said it sees little merit in a deal that does not
offer its shareholders a full premium.
For its part, the vehicle of the software entrepreneur
Murria has said it would combine its digital capabilities with
the brand recognition of M&C, and invest heavily to help it
better compete.
Murria is M&C's deputy chairman and biggest investor. She
owns 12.5% of M&C directly, while AdvancedAdvT owns another
9.8%.
AdvancedAdvT said in Monday's statement that it would
propose a new board structure after a merger that would see
Saatchi's Moray MacLennan continue as chief executive and
AdvancedAdvT's Gavin Hugill become chief operating officer of
the merged entity.
Vin Murria would act as chairperson with a majority of
independent directors.
M&C Saatchi in a trading update on Friday announced that
full-year 2021 headline profit before tax would be ahead of
expectations, while a regulatory investigation into the group's
accounting had closed without any enforcement action.
Analysts at Peel Hunt said with the group's recent strong
trading and the closure of the investigation it believed a
further improved offer would be required. Advanced has until Feb
3 to provide a formal offer, they said.
(Reporting by Emma-Victoria Farr and Kate Holton; editing by
Rachel Armstrong and Jason Neely)
