& C Saatchi today received £ 310 million in takeovers from competitor Next Fifteen today, avoiding an unwanted competitor offer from its own deputy chairman.
Vin Muria, the largest shareholder, has been running an advertising firm for several months.
But from the beginning it was clear that the rest of the board, including CEO Mora McLennan, did not welcome her approaches.
Today’s deal with Next Fifteen was 247.2 pence, of which the monetary element is 40 million pounds. That’s well above her 207 pence offer and nearly 50% higher than the stock was yesterday. The stock price jumped from 58 to 223 pence, which is still below the offer, indicating some concern that Muria could still use his 12% stake to be destructive.
McLennan says the deal will be a “powerful accelerator” for the firm best known for its ties to the Conservative Party. It was founded by the Saatchi brothers.
The proposal from Next Fifteen is supported by all board members except Muria, including Chair Gareth David, who rejected her bid as “ridiculous”.
Tim Dyson, CEO of Next Fifteen, said: “M&C Saatchi is synonymous with creativity and strategy, while Next Fifteen has built a reputation around its technology and data-driven offerings. It makes a great combination. ”
Sector analysts view the deal as a deal between free advertising people who in many cases have known each other for years.
There is talk of “work efficiency”, but job losses are expected to be negligible.