M&C Saatchi deal deadline likely to be extended

LONDON, Feb 2 (Reuters) - A deadline Thursday for the
biggest shareholder in M&C Saatchi to clarify its
intentions in making a bid for the advertising group is likely
to be extended to allow the two sides to keep talking.

M&C, one of the biggest names in British advertising due in
part to its links to the ruling Conservative Party, has so far
dismissed the advances of its biggest shareholder, an
acquisition vehicle led by software entrepreneur Vin Murria.

But a person familiar with the situation said the two sides
were talking, meaning a deadline set by the Takeover Panel is
likely to be extended.

Murria's AdvancedAdvT said in January it had
floated two options for M&C, one an all-share offer that valued
each share at around 220 pence or an alternative structure that
includes some cash, valuing them around 200 pence.

That came after an earlier rejection from the board.

The 220 pence price - valuing M&C Saatchi at about 270
million pounds ($367 million) - is based on the AdvancedAdvT
stock price when it was halted from trading. The independent
directors also rejected that offer. M&C's shares closed at 177
pence on Wednesday.

AdvancedAdvT, which is also backed by private equity group
Marwyn, has said it would combine its digital capabilities with
the brand recognition of M&C and invest heavily, including
through acquisitions, if it takes control.

($1 = 0.7364 pounds)
(Reporting by Kate Holton; Editing by Cynthia Osterman)