A London Stock Exchange disclosure document confirmed that Active Value's stake in Cordiant Communications now stands at 25.13%, representing 104,888,099 shares.
The fund manager has gradually been increasing its stake since WPP's bid for Cordiant was accepted by the group's banks and its board. Yesterday, it was confirmed that Active Value's stake had increased to 24.53% -- today's increase represents another 2.5m shares or 0.6% of Cordiant.
It follows the admission on Friday that Active Value had raised its stake from 16.7% to 23.94%.
WPP needs the support of 75% of Cordiant's shareholders for the deal to succeed. If WPP fails to get 75% of shareholder support Cordiant could go into administration.
Alternatively Active Value, which believes WPP is offering shareholders too little, could try and force WPP to increase its bid for Cordiant. Currently, the bid values the ad group at just £10m. A third option of launching a rival bid to WPP's would have to see it table an offer of around £300m. Active Value offered no comment.
The increase in Active Value's Cordiant stake follows news this morning that the fund manager had lost the support of investment bank WestLB, which was initially behind its bid to inject cash and a new management team into troubled Cordiant.
The loss of the bank is a major blow to Active Value, because it was its only public supporter in the fight for Cordiant. The bank withdrew its support in the wake of WPP's £266m bid for Cordiant.
Although the German-owned investment bank had not planned to provide Active Value with any funds for its Cordiant bid, but it was instrumental in helping the fund manager put its bid together.
Prior to the WPP bid being accepted, Active Value had originally planned to inject £40m in funds to Cordiant and install Richard Wheatly, the former head of Jazz FM and Leo Burnett, as chairman to replace chief executive David Hearn.
At the weekend, it was reported that Active Value had approached Grey Global Group to help in its battle against WPP, confirming it is searching for allies to stop the deal, which gives shareholders only £10m.
Julian Treger and Bryan Myerson, who run Active Value, could now seek a wider alliance, taking in Cerberus, the US hedge fund that speaks for £80m of Cordiant's debt.
If they do stop the £266m deal, WPP, which now controls most of Cordiant's debt, has said it will put the advertising group into administration, where its most sought-after assets can be picked off.
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