M&C Saatchi reiterates rejection of 'derisory' ADV offer

M&C Saatchi reiterated its rejection on Tuesday of what it called a "derisory" takeover offer from largest shareholder Advanced Advt.

The advertising group said it continues to recommend that shareholders reject the ADV offer by taking no action. ADV is the investment vehicle of Vin Murria, who was formerly deputy chair of M&C Saatchi.

"The M&C Saatchi directors continue to believe the ADV offer is derisory," it said. "They believe that the ADV offer fails to reflect the growth and opportunities in front of M&C Saatchi and does not offer a fair value for the business."

The company noted that the ADV all-share and cash and share offers value each M&C Saatchi share at 175.8p and 182.0p respectively, representing a premia of only 10.6% and 14.5% to the closing share price on 12 September, "and exchanges a plan which is already delivering for one that has increased risk, uncertainty and dilution" for shareholders.