The price is lower than what some expected Publicis could have ended up paying after WPP took control of Cordiant last month. It has been reported that the French group could have paid as much as £85m.
In a statement, WPP said, "WPP confirms that it has sold its 25% shareholding in ZenithOptimedia, acquired as part of the Cordiant Communications Group transaction. The equity interest has been sold to Publicis Groupe at a price of £75m in accordance with Publicis Groupe's contractual obligation."
WPP confirmed that it would retain nine offices that were wholly owned by Cordiant -- these offices cover Hong Kong, Malaysia, Indo-China, Argentina, Greece, Norway, India, Australia and Lebanon. WPP said it has trading relationships in another 14 markets where ZenithOptimedia has franchises.
Publicis lost out in the battle for Cordiant to WPP, having made strong moves early in the battle before Sir Martin Sorrell was able to secure a deal and fight off challenges from investment fund Active Value.
Publicis CEO Maurice Levy said he had received assurances from WPP that the French group would be able to buy Cordiant's 25% stake once the Cordiant deal was completed.
Publicis already owned 75% of the media group and had a long-term option from former partner Cordiant to buy the remaining 25% stake for £75m in January 2004.
However, when Cordiant announced its plans to break up earlier this year, Levy is understood to have made a deal with chief executive David Hearn to buy the group for around £65m before January.
It is understood that Levy then approached Sir Martin, who agreed to honour the deal if his bid for Cordiant was successful -- but on the condition that Publicis did not make a bid for the advertising group.
However, as Publicis then went ahead and made an initial offer for Cordiant, Sir Martin is understood to have made it known that the deal no longer stood.
Levy is understood to be upset about this, because he believes Cordiant's board double-crossed him as it was set to accept his offer and changed its mind at the last minute.
ZenithOptimedia's audited revenues and post-tax profits for 2002 were £148m and £13m respectively. Recent disposals by Cordiant in the last two months now total £160m. This compares with a pre-disposal net debt level of £235m.
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