Jun 17, 2022
Ad group M&C Saatchi reverses decision to support takeover by Next Fifteen
UK advertising agency M&C Saatchi has reversed its decision to support a proposed takeover from rival Next Fifteen, just weeks after agreeing the deal. The agency, founded by the Saatchi brothers and known for its ties to the Conservative party, said on Friday it no longer supported the deal because of the drop in Next Fifteen's share price since the agreement in May. Shares in Next Fifteen have fallen more than 30 per cent since then to 892p, and were trading 2 per cent lower on Friday. Next Fifteen had offered 0.1637 of its own shares and 40p in cash for each M&C share, valuing the takeover at £310mn. The advertising group said on Friday that, along with advisers Numis and Liberum, it no longer considered the terms of the deal to "Be fair and reasonable solely on the basis of the deterioration in value of Next Fifteen shares since the announcement date". The advertising group added that it considered the Next Fifteen offer and Murria's offer "To be inferior to M&C Saatchi's standalone prospects".
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