The rumour resurfaced as the company confirmed it is in talks about the possible sale of its Australian advertising agency, George Patterson Bates, and as speculation grows that a management buyout at its financial PR operation FD International is to be mounted.
Scholz & Friends is the German-based advertising agency with offices in 13 markets in which Cordiant owns a 77% stake. Sir Martin Sorrell, chief executive of the WPP Group, has confirmed that his company would be interested in acquiring the agency. However, at the beginning of the year he said that no talks were taking place.
There is a conflict of interest between one of Scholz & Friends clients, Reemtsma tobacco, and Bates Worldwide, which works for British American Tobacco and Brown & Williamson, owner of the Kool and Lucky Strike brands.
The sell-off comes as Cordiant undergoes a radical overhaul, with its two top roles being taken by relative newcomers to the advertising industry this year. In January, David Hearn took over from Michael Bungey as CEO, while Nigel Stapleton, a former co-chairman of Reed Elsevier, was named as chairman last month to replace the outgoing Charlie Scott.
The rumours of an asset sale come as Cordiant needs to take drastic steps to shore up its finances. It confirmed last week that it was in discussions with the Australian private equity firm Pacific Equity Partners to sell Australia's largest advertising agency, George Patterson Bates, along with the creative shop the 北京赛车pk10 Palace and its stake in Zenith Media. The company is reported to want A$100m (拢36m) for the sale.
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