The reports, first revealed in 北京赛车pk10 magazine last week, suggest that the London creative agency is set to be acquired by Sir Martin Sorrell to become the London operation of WPP's fourth network Red Cell. Chime's share price hit 61.5p, a rise of 5p.
Speculation has continued with stories continuing to circulate in weekend papers. Some were feverish, suggesting that WPP might in fact acquire all of Chime, which, with its reliance on the hard-hit PR industry, has been hard hit by the downturn.
The future of Red Cell was discussed at a WPP board meeting in New York last week, boosting speculation that HHCL's senior management will take over what has become virtually a Red Cell "shell" operation in the UK.
In return for the sale of HHCL, which Chime acquired five years ago for 拢24m, the Lord Bell-controlled group will be offered a minority stake in the Red Cell network.
The move to beef up the UK operation of Red Cell mirrors earlier moves across the Atlantic, where WPP acquired US creative shop Berlin Cameron & Partners. The New York shop became the new headquarters for the Red Cell network.
The acquisition of HHCL in the UK would be seen as a major step toward firming up the youthful network, which until now lacked real international credibility. The move would also transform HHCL from a standalone London agency to part of a fully fledged international network.
A possible agreement has also raised speculation about the future of Rupert Howell. The former HHCL boss, who is now chief executive of its Chime Communications parent, in which WPP has a 20.4% stake, is said to be ready to leave Chime by the end of the summer.
The sale of HHCL to WPP would bring the agency full circle because Chime's deal to buy HHCL was bankrolled by WPP. WPP bought a 29.9% interest in Chime to finance the HHCL purchase.
If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .