PR firms in a spin on takeover talk

TWO of the City's top PR agencies were forced to start unspinning today, as they announced their parent companies had held takeover talks but that they had ended.

Incepta, owner of Citigate Dewe Rogerson, and Chime, owner of rival Bell Pottinger, held talks earlier this month over a possible get together.

An intermediary brought Incepta's chief executive Richard Nichols and Lord Bell, Chime's chairman, together, and several chats ensued.

But pricing is everything and, a fortnight ago, it became clear that whatever the deal (and it was most likely to be an Incepta takeover of Chime) it was not rich enough for Bell.

However, as is the wont of public relations companies, news of the talks leaked out to the Sunday newspapers.

Today, both companies issued the shortest of statements to confirm the talks had taken place and ceased. Neither side would go beyond those statements publicly.

However, it is reliably understood talks centred on Incepta, which is capitalised at £141m, taking over Chime, valued at £57m, with the whole thing dressed up as a merger.

The terms of this deal never made it up to Lord Bell's target level and he walked away. Personalties, however strong they might be, were not one of the problems.

Neither side would rule out a return to the bartering, but it seems unlikely talks will recommence as early as the New Year - if ever.

The stock market took the whole thing in its stride with Incepta shares unmoved at 71p and Chime up 1¼p at 28¼p.