(Reuters) – British advertising group M&C Saatchi on Friday rejected a takeover offer from its biggest shareholder for an all-share deal, saying the proposal did not reflect the value of the business.
Director Vin Murria’s investment vehicle AdvancedAdvT offered M&C investors 1.86 new shares in exchange for each M&C share they own, M&C Saatchi said in a statement.
“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.
On Thursday, 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.
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Ramakrishnan M.)
