M&C Saatchi says float will be different this time around

LONDON - M&C Saatchi is promising that its flotation will be different this time around with no plans for acquisition-led growth, according to an interview with David Kershaw who will become chief executive of the listed agency.

According to a report in the New York Times, which interviewed Kershaw, a partner at M&C Saatchi, the company will eschew growth via debt and will instead expand into Europe and Asia by cherry-picking top talent, rather than buying rivals.

Kershaw told the New York Times today that creative entrepreneurs "don't like sitting in conglomerates", with the plan that M&C Saatchi will be able to lure talent away from the big ad groups to lead its expansion.

The IPO will see around 20% to 30% of M&C Saatchi's shares listed on London's Alternative Investment Market in a move that the firm hopes will raise 拢10m to help it expand.

The agency will be keen to assure shareholders that there will not be a repeat of the behaviour that led to the bitter dispute between Saatchi & Saatchi founders Maurice and Charles and the agency's shareholders.

The pair were forced out of Saatchi & Saatchi in 1995 after the company's share price had plummeted and amid wide criticism of extravagant spending.

David Herro, a partner at Harris Associates and the man who led the revolt against the Saatchi brothers, told the paper: "Caveat emptor. The management of this company has not exactly been shareholder friendly."

M&C Saatchi has retained respected City PR firm Tulchan to handle media relations for the float.

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