M&C Saatchi rejects increased offer from suitor
The independent directors of M&C Saatchi have rejected an increased bid from its largest shareholder and chair, the company said on Monday.
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A company linked to businesswoman Vin Murria, a software entrepreneur, lifted its offer by more than a fifth, but this was rebuffed by the board.
Murria’s company, AdvancedAdvT, tabled two different potential offers for the communications group. One would pay for the merger purely in AdvancedAdvT’s shares. Investors in M&C would be handed 220p in AdvancedAdvT’s shares should the bid proceed.
It would mean that M&C’s current shareholders not linked to Murria would keep more than half the shares in any new merged entity. Murria holds around 12.5% of M&C, while AdvancedAdvT bought a 9.8% stake earlier this month.
The other potential deal would give shareholders in M&C a small cash payment on top of their new shares in the merged company.
“The board of AdvancedAdvT believe this is a truly beneficial merger; it provides significant investment and additional expertise to build on the existing M&C platform, seeking to drive M&C’s future growth at significantly greater pace for the benefit of all stakeholders,” AdvancedAdvT said in a statement.
AdvancedAdvT added that M&C’s independent directors said on Sunday that they had rejected the deals. It is “considering its options.”
M&C on Friday said an investigation into its accounting, stemming from a 2019 scandal, had closed without the authorities taking enforcement action as it reported stronger-than-expected results.