LONDON (Brand Republic) - Speculation is growing that Cordiant Communications, the world鈥檚 10th-largest advertising group, is up for sale and open to offers.
Chief executive Michael Bungey said Cordiant was ripe for a takeover from rivals and suggested they move quickly before the price increases. He made the comments as he revealed yesterday鈥檚 79% surge in profits for last year.
The comments came as the group, which owns Bates Worldwide, finally announced it had reached a deal with Publicis Groupe about their media buying interests. The two are forming a media-buying company, which will be the world鈥檚 fourth-largest, by combining Zenith Media and Optimedia.
Cordiant will combine its 50% stake in Zenith Media with Publicis鈥檚 Optimedia. The new buying agency, which will have estimated billings of more than £10bn, will be 75%-controlled by Publicis.
Cordiant has long been the focus of speculation, together with Grey Advertising and True North Communications of the US, as one of the few remaining single agency networks not yet swallowed up by super-group agency-holding companies such as the UK鈥檚 WPP Group or Omnicom Group of the US.
Cordiant is an attractive proposition, with healthy profits aided by the fact that only 26% of its operating profit comes from North America, which has suffered a slump in advertising.
This morning Cordiant鈥檚 share price rose to 1.06% to 287p.