Another twist has come in the protracted M&C Saatchi takeover saga, as the agency’s shareholders are now expected to reject its long-anticipated purchase by the Next 15 holding group.
The news comes only days after the deal was officially greenlit by the Competition and Markets Authority (CMA), and despite widespread backing by brokers, who believe the move to be in M&C Saatchi’s best interests.
According to Next 15, the ongoing sticking point appears to originate with M&C Saatchi’s majority shareholder, Vin Murria’s AdvancedAdvT (ADV) firm – which has maintained since the summer that price-per-share that the holding group is offering does not reflect M&C Saatchi’s true value and financial potential.
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Responding to the news, a Next 15 statement read: “While this would be a disappointing outcome and the board of Next 15 continues to believe in the benefits which a combination of Next 15 and M&C Saatchi could deliver, the board will always maintain pricing discipline when pursuing its M&A strategy which may result in certain transactions not proceeding.”
ADV had first raised its concerns around Next 15’s offer in August, with a spokesperson commenting at the time: “Although Next 15 (NFC) is a credible buyer, its offer price does not reflect the value of foregoing control and the significant synergies available to NFC.
“Based on the current implied value of NFC’s offer, ADV and Vin Murria intend to vote their shareholdings in M&C Saatchi against NFC’s scheme.”
Shareholders are due to reconvene on 31 October to vote on the deal.
