(Adds details, shares)
LONDON, Jan 7 (Reuters) - The biggest shareholder of M&C
Saatchi, who has indicated she wants to buy the British
advertising group, set out plans on Friday for an all share
exchange merger with her acquisition vehicle, disappointing
M&C's investors.
Shares in one of the biggest names in British advertising
fell 11% in early trades, following two days of gains, after Vin
Murria's vehicle AdvancedAdvT said a merger would
provide cash to invest in the business, boosting its digital
capabilities and deal-making firepower.
AdvancedAdvT, which does not own any other assets, raised
130 million pounds ($176 million) last year. Software
entrepreneur Murria owns 13% of the vehicle, while private
equity group Marwyn is the biggest shareholder.
Murria also owns 12.5% of M&C directly while AdvancedAdvT
owns 9.8%. She is the deputy chairman of the ad group, which was
founded in 1995 by brothers and ad moguls Maurice and Charles
Saatchi.
"The combination of the M&C brand and platform with the
company's funding and experience is expected to increase the M&A
opportunity pipeline," AdvancedAdvT said in a statement.
M&C revealed on Thursday that Murria had told the group she
intended to make a bid. It advised shareholders not to do
anything, and said its new strategy was working well.
($1 = 0.7390 pounds)
(Reporting by Kate Holton; editing by James Davey)
M&C Saatchi (SAA)
