M&C Brexit campaign ad
(Picture: M&C Saatchi/Campaign)A TAKEOVER of storied Soho ad firm M&C Saatchi moved a baby step closer today, but opposition to the offer led by deputy chairman Vin Murria remains strong.
Her AdvancedAdvT vehicle is the biggest shareholder in M&C, an agency closely linked to the Conservative Party.
Today she raised her offer to 230p a share, in either AdvT shares or a mixture of shares and cash. That values M&C at £281 million.
At that price, former management including David Kershaw would see their stakes valued at more than £10 million.
The previous offer was worth either 200p a share or 220p depending on the cash/equity mix.
M&C says this fresh offer still undervalues the business, but are open to further discussions.
Some in advertising question Murria’s knowledge of the sector. One rival also noted that her “brusque manner” may not appeal to all at M&C.
Her intention was to keep existing management including Moray MacLennan in place after a successful bid. But since then CFO Mickey Kalifa has announced his departure.
She wants to make M&C a more digital agency.
Kershaw told the Telegraph recently: “If you turn it into a tech shop, then you throw away the whole heritage, culture and brand of supreme creativity, which is what Saatchi stands for. Moray and the team are putting lots of tech into the business and accelerating that. Clients want creativity as an integral part of the tech services. Bad advertising, brilliantly and accurately served through digital tech, is still rubbish - it’s just better targeted rubbish.”
M&C shares today moved up 5p to 184p, still far below the value of the offer. That suggests the City thinks there is little chance of the deal going ahead at present.
M&C said: "The Independent Directors believe that it is in the best interests of all stakeholders in M&C Saatchi to continue to engage constructively in discussions with AdvT.”
Talks with Murria “remain ongoing”.
M&C has recovered from an accounting scandal in 2019 that led to it being investigated by the Financial Conduct Authority.
