The drama continues for M&C Saatchi, after the ad giant urged shareholders to reject Vin Murria’s £254m bid for the firm, as well as the alternative bid from Next 15.
In a defence document released this morning, the M&C board reiterated previous claims that the investment vehicle’s bid “materially undervalues” the firm. It added that the offer represents “both a low price and a high risk”, suggesting there could be a dilution of shares.
The company also said in a separate note that Next 15’s undervalued the firm because of the “deterioration of Next 15’s share price in current market conditions”. The offer started at 247.2p per M&C share but has now dropped to around 195.5p a share.
Despite backtracking from the initial acceptance of Next 15’s approach earlier this month, M&C did state that the offer still remains superior to the businesswoman Murria’s offer, who, alongside her investment vehicle, has a combined stake of 22 per cent in M&C.
The deadline to vote for AdvancedAdvT’s and Next 15’s bid is 13 and 17 August respectively.
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