M&C Saatchi rejects takeover offer from its biggest shareholder
M&C Saatchi, a British advertising group, has rejected a takeover offer from its biggest shareholder for an all-share deal on Friday, saying the proposal did not reflect the value of the business, according to media reports.
The reports further said that Vin Murria’s investment vehicle AdvancedAdvT ADVT.L offered M&C investors 1.86 new shares in exchange for each M&C share they own.
“It is not clear to the independent directors how shareholders and other stakeholders would benefit from ownership dilution and a change in board leadership of the company,” M&C Saatchi said, urging shareholders not to take any action.
According to media reports, M&C Saatchi revealed that Murria had told the advertising group she intended to make a bid for the company in which she currently owns 12.5% directly and 9.8% through AdvancedAdvT.