Publicis 'won't hijack Cordiant deal'

PUBLICIS was forced into an embarrassing act of contrition today as the French advertising giant, under pressure from the Takeover Panel, made its third Stock Exchange statement in as many working days to clarify its intentions towards smaller UK rival Cordiant.

Cordiant has agreed a takeover with Sir Martin Sorrell's WPP, valuing its shares at £10.7m.

However there has been repeated speculation that UK Active Value, an investment fund specialising in picking up underperforming shares, would use its 28.8% stake in the company to launch a counter offer.

The rumour mill has gone into overdrive after Nahed Ojjeh, a Paris-based Syrian heiress, picked up a 10% stake in Cordiant over the past month, paying well above the 2.57p a share that WPP's all-share offer values Cordiant at.

In a statement on Friday, Publicis chairman Maurice Levy said his firm had rejected overtures to join forces with UK Active.

However, in a stunning Uturn, Publicis executives met UK Active on Saturday. After a further opaque statement yesterday, Publicis finally came clean today with a lengthier one, saying the meeting had been about setting up a concert party to raid Cordiant's shares, but that the proposal had been declined.

Cordiant shares, steady at 3.37p, are set to be delisted by WPP tomorrow in an attempt to stave off any bids to derail its takeover.

Publicis reiterated its only interest is in wresting 100% control of media buying unit Zenith, 25%-owned by Cordiant.