The statement from WPP followed a new buying spree of Cordiant Communications shares yesterday by the fund manager.
Active Value increased its stake in Cordiant, buying another 2m shares and taking its holding in the ad group to 26.69%.
It is understood that others have also been buying shares in Cordiant based on the idea that WPP will relent and increase the 拢10m it is offering shareholders.
It is this that moved WPP chief executive Sir Martin Sorrell to make the unusual statement about WPP's intentions for Cordiant.
"Details of the recommended proposal for WPP to acquire Cordiant were set out in the document sent to Cordiant shareholders on June 28 2003. WPP does not intend to revise the terms as set out in this document, namely one new WPP share for every 205 Cordiant shares," the statement said.
Initially at yesterday's AGM meeting, Sir Martin had said somewhat vaguely that "our offer is our offer", before finally issuing the statement in the early evening.
Some analysts believe that Active Value's game plan was to force WPP to increase its offer. With this plan now blown, it has few options for manoeuvre.
It can either accept WPP's offer or it can risk more losses and block WPP's bid, which requires the backing of 75% of Cordiant shareholders, and force the crises-hit ad group into administration.
There is speculation that this might be its intention, whereby it can then fight it out with WPP to buy Cordiant's assets, injecting cash back into the business and installing its management team of chairman Richard Wheatly, the former Leo Burnett and Jazz FM chief, and Stephen Davidson as finance director, and possibly Ben Langdon as CEO of any rescued business.
Yesterday, it was also became apparent that Cordiant shareholders will face a double vote at the emergency meeting on July 23, voting first on WPP's offer and then on Active Value's plan to inject equity and keep the business independent.
It looks increasingly likely that both options will fail and Cordiant will be run into administration, facing further chaos that could lose it more clients in the process.
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