Cordiant Communications, the embattled advertising group jumped 21.7% to 7p after the weekend newspaper reports that it was set to announce the disposal of its Public Relations group Financial Dynamics, and its Australian business, George Patterson Bates, in a move which will raise 50m for the company.

According to the Independent on Sunday, Cordiant has been negotiating with the management of Financial Dynamics for at least three months about a buy-out, and it is understood an agreement has been reached to sell the group for 25 m. George Patterson Bates, meanwhile, is being bought by venture capital group Pacific Equity Partners for 25.4m, though Cordiant will retain a 20% stake, the paper said.

02 Jun 2003 13:09 BST



WPP confirms Cordiant interest

LONDON (Reuters) - WPP, Britain's largest advertising company, has confirmed that it is considering the purchase of the Cordiant, the second-largest UK ad firm.
"With regards to Cordiant, we can only confirm that we are continuing to undertake due diligence," a spokesman said on Monday.

WPP Chief Executive Martin Sorrell had previously indicated he was not interested in Cordiant assets, but his company is now taking an active role as the endgame approaches for the owner of advertising agencies including Bates Worldwide.

RNS Number:8743L
Active Value Advisors Limited
03 June 2003

3 June 2003

Press Release

EGM NOTICE


Active Value, the leading activist shareholder fund, announces that it has
prepared a requisition to convene an Extraordinary General Meeting of Cordiant
Communications Group plc shareholders (the "Requisition") which will be
delivered to the Company tomorrow morning.

The Requisition proposes a number of ordinary resolutions (the "Resolutions")
aimed at ensuring that the shareholders, lenders, clients and
employees are not disadvantaged by the Company's current negotiations to
be acquired by one or other of its competitors. The Resolutions propose to


* Remove from office existing Directors of the Board of the Company;

* Install a new management team, led by Richard Wheatly as Executive
Chairman and Stephen Davidson as Finance Director. The new management
team, including a Chief Executive, has already been formed; and

* Ensure that the Company is refinanced through a proposed capital
injection programme which has been delivered to the Company's
financial advisors by agents who are acting for the new management
team.

A further resolution precludes the agreement, by the incumbent Board of
Cordiant, to the disposal of the Company at or near the current share price.

Further announcements will be made in due course.


Ends


Enquiries


Active Value: Brian Myerson 020 7240 3222

Prospero Financial: Michael Oke 07778 469630
Claire Bithell 020 7898 9394


This information is provided by RNS
The company news service from the London Stock Exchange
END

NOESSMFMDSDSESM

http://media.guardian.co.uk/advertising/story/0,7492,969722,00.html

Looking better to me.

RNS Number:9376L
Cordiant Communications Group PLC
04 June 2003



CORDIANT COMMUNICATIONS GROUP PLC

("Cordiant")


Cordiant confirms receipt of a letter requisitioning an Extraordinary General
Meeting consistent with yesterday's announcement by Active Value Advisors ("
Active Value") and also notes comments made to the media by Mr Myerson of Active
Value.



Following the announcement at the end of April of the loss of a major client,
the Board of Cordiant announced that it was conducting a twin tracked strategy:
to carry out an orderly disposal of a number of non-core assets and at the same
time to evaluate a range of strategic options concerning the future of the
remainder of the Group. Throughout this process the Board has worked closely
with its lenders, who have been supportive of the Board's strategy. Management
has also maintained a continuous dialogue with the Group's major clients who
have indicated their clear preference for the Group to seek an industry partner.




Both of these processes have now reached an advanced stage. The disposal of the
Group's Australian business has already been announced and the disposals of
Scholz & Friends and FD International are both expected to be announced shortly.



During the management changes announced last year and subsequently, the Board of
Cordiant has maintained an open dialogue with all its major shareholders
including Active Value. More recently, Active Value made known its support for
a proposal from WestLB regarding the appointment of a new management team and a
possible equity injection. The Board has cooperated with WestLB and continues
to furnish them with information to enable them to rework their proposal.



Separately the Board continues to advance its discussions with various parties
and is seeking to bring them to a conclusion in the very near future in the best
interests of the stakeholders of the Group and its clients.



4 June 2003



Enquires:

College Hill Tel: +44 (0) 20 7457 2020

Alex Sandberg
Adrian Duffield

Private investors back Cordiant purge

Chris Tryhorn
Friday June 6, 2003

Private investors in advertising group Cordiant are rallying round corporate raider Active Value by declaring their support on internet bulletin boards.

An email from one investor to Active Value's Julian Treger suggested small shareholders should back the resolutions Active has put before Cordiant, which include a complete purge of the boardroom.

The investor told Active its demand for an extraordinary general meeting of the crisis-hit advertising company was welcomed by investors as "a positive move".

"I am aware of many private investors that would offer their support to you in this matter," the investor wrote.

"Individually they are obviously 'a tiny whisper' but if collectively represented through a 'champion' the voice could be loud and clear.

"Therefore, would it be possible/helpful for Active to receive the proxy vote of private investors such as [sic] to boost their overall representation at the forthcoming meeting."

The bulletin boards of internet brokers would be the ideal place to contact "shareholders of a few hundred to many hundreds of thousands of ordinary shares", he added. "A standard pledge of proxy could be easily promulgated."

The email suggested Active could rely on a well-organised army of private investors in its fight to wrest control of Cordiant from its board before it can sell the company.

Cordiant has said its directors, lenders and clients would favour a takeover by an "industry partner" such as French group Publicis or Sir Martin Sorrell's WPP, which is conducting "due diligence" on the company.

Active Value, which is Cordiant's leading shareholder with 14.1% of the company, fears investors will be short-changed by a takeover or left with virtually nothing if Cordiant embarks on a debt-for-equity swap.

Active has released letters its lawyers obtained from Cordiant that have blown the lid on bonus payments to be made to Cordiant executives in the event of a takeover.

It said it believed the documents "clearly indicate that the directors are incentivised to sell the business to a third party rather than seek to restore trading at Cordiant".

Active wants to install an as-yet-unnamed chief executive, with Richard Wheatly, the former chief executive of Jazz FM, appointed executive chairman and Stephen Davidson, the West LB vice-chairman, made Cordiant's new finance director.

Disenchantment with chief executive David Hearn's track record at Cordiant has made some investors back Active's audacious strategy, pinning their hopes on an independent Cordiant being able to trade its way out of trouble.

"There are potentially many small shareholders in Cordiant Communications who are concerned about the recent board and management decisions emanating from Cordiant," the private investor wrote in the email to Mr Treger.

Cordiant, which is labouring under more than 200m of debt, is nearing the endgame in a dramatic struggle to rescue its business before the July 15 bankers' deadline

Big press rumours over the weekend of counter bidders but will it be above 3p?