Cordiant leads resurgent advertising sector as takeover talk returns

LONDON - Advertising shares leaped today, led by battered stock Cordiant Communications, as investors returned to the sector in droves in the belief that the industry would be the first to benefit when the economy begins to recover.

Cordiant soared 13.4% to 114p as speculation persisted that the company, which has seen its stock nose-dive from 300p in the last year, could be an easy takeover target for one of the bigger marketing and communications groups.



The company's shares have become more attractive, amid suggestions of a takeover and the fact that their price fell after a series of profit warnings last year and worries about whether it would lose its Hyundai business.



WPP Group has risen 4.2% to 801.5p, its highest price in six months since before it ended up with, rather than fought Havas for, the media-buying group Tempus.



Havas, meanwhile, shot up 7.5% to €9.45 in Paris and fellow French group Publicis Groupe rose 0.8% to €45.25.



Chime Communications, which owns Bell Pottinger PR and HHCL & Partners, rose 1.1% to 135p, and Incepta, which owns the Citigate Dewe Rogerson PR network, jumped 8.3% to 52p. Aegis, which owns media buyer Carat, climbed 7.4% to 101p.



The UK's TV companies continued to rise again today, although making more modest gains than earlier in the week. Carlton climbed 2.7% to 258.5p and Granada rose 1% to 150p. BSkyB was up 3% to 813p.



Cable company Telewest continued to rise, moving up 5% to 68.25p, while Pearson, owner of the Financial Times, climbed 1.9% to 871.5p and United Business Media rose 3.7% to 531p.



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