Shares in Cordiant were standing at 49.5p, 2p above their opening price this morning, as the FTSE overall recorded rises.
The rise follows this morning's unveiling of Cordiant's interim results and the confirmation that Michael Bungey is to retire as CEO in March 2003 to be succeeded by Hearn, who is currently CEO of Bates Advertising in New York.
The management shake-up was just part of this morning's announcement. Cordiant also announced the formation of the Bates Group as part of a reorganisation plan designed to help reduce costs and differentiate its offering for existing and potential new clients.
Lorna Tilbian, media analyst at Numis Securities, said that the succession plan and integration of Bates Advertising, 141, Fitch and Healthworld "sounds like a lot of common sense".
She said the changes would likely stave off takeover speculation, saying: "The shareholders wanted to see this action."
The company's financial results, which saw profits fall by 48% to 拢11.5m for the six months ending June 30, were actually not as bad as forecast and will take some of the pressure off Cordiant to deliver in the second half of the year. Some analysts had forecast a figure as low as 拢6.3m.
Cordiant has been hit recently by calls from its biggest shareholders, Active Value and Harris Associates, for management changes.
It is thought the fund manager groups were angling to see the UK group taken over.
Despite today's changes putting off a potential takeover it still remains a strong possibility, with many seeing a marriage with the French group Havas as a likely outcome.
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