British media giant WPP agreed today to buy advertising rival Cordiant in a £266 million sterling deal, the majority of which is debt, ending a battle with France's Publicis for the firm.
WPP said it would offer one new share for every 205 Cordiant Communications shares, valuing the share capital of the firm - laid low by client defections and a slump in the advertising market - at around £10 million or 2.4 pence per share.
WPP said it would raise around £100 million through a placing of new shares towards the cost of the acquisition.
Cordiant shares, suspended from trading earlier this week, were to resume trade today, the firm said. They were indicated 42 per cent lower at two pence.
WPP is being advised by Goldman Sachs and HSBC. UBS is advising Cordiant.