Markets are still awaiting Cordiant's full-year results, which were originally due to be released by the end of March but are now due on April 19. Cordiant has said it expects full-year revenues to fall 9% due to the economic slowdown.
Yesterday saw its share price rise to 95p, its highest level in weeks as it extended gains made at the tail end of last week. Investment bank Dresdner Kleinwort Wasserstein upgraded its stance on Cordiant to "hold" from "reduce", with a 12-month price target of 100p, up from 90p.
Last month, Cordiant saw its shares crash 9% to 69p on renewed concerns about a possible 拢200m write-off against its purchase of US PR group Lighthouse Global Network.
The upgrade by Dresdner Kleinwort follows the marketing services firm's agreement last week of new terms with its bankers. The investment bank also said in a note that the upgrade reflected "the change in operating performance of the group following the industry downturn in 2001".
However, Cordiant's share price will remain volatile in the coming weeks as its results and the outcome of the Hyundai Motor America pitch become due. Cordiant-owned Bates USA West, Irvine, California, has made the five-strong shortlist for the important $160m (拢112m) creative account.
Should Bates lose the account, it will be another blow for Cordiant. Earlier this year, its share price dropped when it was revealed that the Korean car group was shifting its $300m media account out of Bates and into Carat, owned by the Aegis Group.
As one of the last remaining independent advertising and media groups, Cordiant is the subject of continuing takeover talks.
Last week, Cordiant said it had settled its dispute with former Business Communications International CEO Nick Miles and group managing director Hugh Morrison, the PR duo sacked by Cordiant earlier this year.
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