In a statement, the Takeover Panel said its Executive has been investigating dealings by Nahed Ojjeh in Cordiant shares and concluded that a number of breaches of the City Code on Takeovers and Mergers have occurred in relation to the disclosure of such dealings.
In its statement, the Takeover Panel said: "The Executive regrets that these breaches of the Code occurred and considers that the conduct of Mme Ojjeh has fallen short of the standards required of parties involved in takeovers. The Executive emphasises that all parties who wish to deal in relevant securities or otherwise become involved in transactions subject to the Code must comply with the Code and, if appropriate, take the necessary advice to ensure that they are able to do so. Mme Ojjeh is accordingly hereby criticised."
The Takeover Panel is powerless to act against Ojjeh becuase she is not only a foreign national, but she is also a private individual investor. The panel is designed largely to take actions against corporations, which it has and does fine for breaking its rules.
News of the investigation follows more share-buying activity by Ojjeh yesterday, as she increased her stake in Cordiant from 10.1% to 10.95%. She has still made no indication of what she is planning.
This morning, Cordiant has urged shareholders to back WPP Group's offer after Active Value's bid hit a major setback as Richard Wheatly, the former Jazz FM and Leo Burnett chief, and Stephen Davidson, a former West LB executive, said they did not intend to stand for election as Cordiant directors at the extraordinary general meeting due to take place on July 23.
The fund manager had proposed the two as chairman and finance director -- as well as an unnamed ad agency boss, who has also withdrawn as CEO -- to replace Cordiant chief executive David Hearn and his management team and keep the troubled ad group independent.
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