Sacked WPP Italy manager tries to buy its affiliate

LONDON – The conflict between WPP and its sacked Italian head Marco Benatti has taken a twist after Benatti made an offer for a Milan-based marketing agency in which both parties hold shares.

Sir Martin Sorrell, the WPP chief executive, dismissed Benatti on January 9 and the group has since opened an investigation into possible fraud at its media buying operations in Italy, which is understood to be focusing on Benatti's role.

Benatti, who is considering legal action, claimed he was dismissed because a leadership problem developed between him and Daniela Weber, WPP Italy's chief operating officer.

He has since openly criticised Sorrell, telling Reuters Sorrell's action was brutal, impulsive and taken for personal and not business reasons. He also claimed that he did not think that all of WPP's shareholders were in agreement with Sorrell.

Benatti is now attempting to take control of Fullsix, a WPP affiliate email marketing agency of which he is vice-chairman and which is listed on the Italian stock exchange.

WPP owns 26.2% of Fullsix after raising its stake from 22% in January.

Benatti on Monday raised his stake from 35% to 41%, which under stock exchange rules meant he had to make an offer for the company.

He has offered €8.14 a share, valuing Fullsix at around €100m (£68m), lower than the market price of €9.96 a share.

WPP has declined to discuss its plans for Fullsix, but told the Financial Times in response to Benatti's accusations: "The facts will speak for themselves. Mr Benatti appointed the chief operating officer of WPP Italy himself, some six years ago. The suggestion that these matters concern style and management philosophy is an attempt to divert attention from the facts."

Benatti has also said he may launch a media buying or marketing start-up in the belief that the nature of his dismissal will invalidate the 12-month non-compete clause in his WPP contract.

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