WPP, run by Sir Martin Sorrell, has been negotiating the deal for months. For Chime the sale of the business will help it out of financial trouble, highlighted in November, which caused a collapse in its shares price at the end of last year.
The sale of HHCL was confirmed in September and coincided with the resignation of Rupert Howell as joint chief executive of Chime. He has since been replaced by Christ Satterthwaite.
Lord Bell issued a trading statement in November admitting the company had breached banking covenants after it looked set to be hit by restructuring costs of 拢12m. Its debt is believed to be 拢32m.
At the time its banks put pressure on Chime to sell the advertising group to help stabilise the business.
However, last month a report by accountants PriceWaterhouseCoopers commissioned by Chime's bank Royal Bank of Scotland revealed that the advertising and PR group could probably trade its way out of trouble, rather than sell HHCL.
If HHCL goes to WPP, it will form the London base for Sir Martin's Red Cell advertising network. Red Cell is WPP's fourth international advertising network and its clients include Coca-Cola.
HHCL is best known for its controversial ads for Tango and Pot Noodle, but the agency has suffered of late losing some of its prize account including Tango and Egg.
Lord Bell is a former advisor to Margeret Thatcher, when she was Prime Minister. He and Sir Martin worked together in the Seventies at Saatchi & Saatchi.
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