* Consortium offers 374 mln stg for Chime
* Deal includes an interim dividend of 2.53p/shr
* Seeking growth in global sports marketing, communications (Adds chairman, analyst comment, updates share price)
By Aastha Agnihotri
July 31 (Reuters) - WPP Plc, the world's largestadvertising group by revenue, has teamed up with U.S. buyoutfirm Providence Equity Partners LLC to buy Chime CommunicationsPlc and make a big push into sports marketing.
Chime said Providence and WPP would pay about 374 millionpounds ($584 million) for the company founded by MargaretThatcher's former media adviser, Lord Bell.
The offer price is at a 33 percent premium to Chime'sclosing price on Wednesday, the day before the company revealedit was in talks. Chime's shares were trading at 361 pence at0910 GMT on Friday, slightly below the offer price of 365 pence.
" ... To fulfill Chime's considerable growth potential,significant new capital is required," Chime Chairman Evan MervynDavies said in a statement.
"Providence and WPP offer Chime both the capital and theindustry expertise to fast-track our ambitions to build a fullscale, global sports marketing and communications business."
WPP boss Martin Sorrell has built his company from nothinginto one of Britain's best-known firms, with more than 179,000employees in 111 countries. The company owns brands such as JWTand Ogilvy & Mather.
WPP already owns a 20 percent stake in London-based Chime,which derives a significant proportion of its business from bigsporting events, including the Olympics and the FIFA World Cup.
Olympic gold medalist Sebastian Coe, who led London'ssuccessful bid for the 2012 games, is a Chime director. Thecompany bought his consultancy business almost three years ago.
"WPP needs to build its position in the sports market andtherefore this is a strategic asset," said Simon Davies, analystat Canaccord Genuity.
Asset management firm Providence, founded in 1989, managesmore than $40 billion in assets and has invested in sectors suchas advertising, sports and entertainment.
The offer from Providence and WPP includes an interimdividend of 2.53 pence per share.
Moelis & Company and HSBC are financial advisers to Chime.Numis Securities is acting as broker to Chime. Robey Warshaw isadvising the buyout consortium.($1 = 0.6406 pounds) (Additional reporting by Kate Holton in London; Editing by PaulSandle and Anupama Dwivedi)
WPP (WPP)
