News of the potential buyers seemed to have helped Cordiant's share price, which this morning had fallen further after yesterday's 67% plunge. Having hit 7.2p, down from Monday's 9p low, it was up by 11am to 11p.
In a statement issued at 10.30 this morning, Cordiant said: "Cordiant announces that, following yesterday's announcement, it has received very preliminary approaches, which may or may not lead to an offer being made for the company. This is one of a number of alternative strategic options that the board is considering."
There was no immediate indication if the approaches made were for parts of the company or for the whole company, although analysts believe it is looking increasingly likely Cordiant will be broken up.
This morning, a number of analysts were predicting that the loss yesterday of Allied Domecq would likely lead to the break-up of Cordiant.
Jesper Jensen at WestLB, told the Wall Street Journal: "This could easily be the end for Cordiant. Everyone else of their big clients is going to sit down and think about 'maybe they know something that I don't'."
Some had predicted possible offers from WPP Group and Publicis Groupe. There are likely to be other interested parties, which could now acquire parts of Cordiant Communications for a knockdown price. Some think that the group could be forced into administration unless a rescue bid is not forthcoming.
Yesterday, Cordiant said it was now actively "investigating alternative strategic options for the group" and this morning reports suggested that it had begun immediate efforts to find a buyer for Bates Worldwide while it looked to save the rest of the group.
Analysts looking at the Cordiant business have identified its healthcare unit Healthworld and below-the-line agency 141 Worldwide as the most attractive pieces of the business.
The Bates Worldwide advertising arm has suffered a string of losses in recent years around the world led by Hyundai in the US, which led to the closure of Bates's west coast office, and followed by Woolworths, Royal Mail and now Allied Domecq.
Cordiant has already announced an asset sale to offload its Germany-based network Scholz & Friends, its Australian agency George Patterson Bates and its financial PR business Financial Dynamics as part of plans to resolve its cash problems.
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