Cordiant shareholders approve WPP buyout, sack top executives

LONDON: Shareholders of the struggling British advertising network Cordiant Communications Group removed top executives from the board before approving a buyout by Martin Sorell's WPP Group. WPP, the world's third-largest agency company, takes control in August

At the meeting held on 23 July, Cordiant's chief executive David Hearn, chairman Nigel Stapleton, chief financial officer Andrew Boland were removed from the board. But corporate governance experts said the move was very rare.

An report says that the buyout by WPP has been highly contested, particularly by Cordiant's largest shareholder, Active Value Advisors. The major objection raised by the shareholders was that they were not getting a fair due for their holdings. However, over 99 per cent of shareholders voted for the deal because they were left without another choice.

In June, Cordiant had agreed to be bought by WPP in a deal that values the company at about ?10 million ($16.8 million). WPP also bought Cordiant's bank debt for 100 per cent of its face value. In case of bankruptcy, the shareholders would get nothing, while the WPP deal grants them one WPP share for every 205 Cordiant shares they own, or about 2.5 pence each.

Ultimately, shareholders had their say when they voted 69 per cent in favor of ousting the three executives from the board. "A significant majority of the votes cast by shareholders other than Active Value were in favour of retaining the three directors, Active Value's votes for removal were sufficient to pass the resolutions," Cordiant said in a statement.

Also read:

Latest Reads
MullenLowe Media Mub comes to India as Lintas MediaHub

MUMBAI: MullenLowe Mediahub from MullenLowe Group has entered India and will operate as a division of MullenLowe Lintas Group’s omnichannel agency, PointNine Lintas. Lintas Mediahub is being launched as a full-service media offering for a digitised world.

MAM Marketing Brands
Harish Shriyan elevated as Omnicom Media Group CEO

MUMBAI: Omnicom Media Group India COO Harish Shriyan has been elevated as chief executive officer. In his latest capacity, Shriyan will now be in charge of the performance of the group’s four offices in the country and will drive the company’s expansion process to meet the demands of new growth.

MAM Marketing Brands
Nestle retains Zenith as AOR

MUMBAI: Nestlé India has retained Zenith as the AOR (agency of record) for its media business. Recently, Nestle also consolidated its nutrition digital marketing business with Zenith and DigitasLBi.

MAM Marketing Brands
Happy mcgarrybowen launches Delhi-Gurgaon ops

The creative agency from Dentsu Aegis Network, Happy mcgarrybowen has expanded its footprint to Delhi-Gurgaon in an attempt to serve its existing clients better and to partner with more clients.

MAM Marketing Brands
Sparx launches campaign with Akshay Kumar in Futsal

MUMBAI: Footwear brand Sparx has launched its new commercial ‘Add Sparx To Your Life’ starring Akshay Kumar. The TVC is supported by a 360-degree marketing campaign which will sprint across outdoor, digital, print and retail promotions.

MAM Marketing MAM
Coca-Cola gets ex-army chief VP Malik as advisor

MUMBAI: Coca-Cola India has appointed retired general Ved Prakash Malik as the chairman of the Coca-Cola India advisory board (IAB). The IAB is the foremost advisory body within Coca-Cola India which advises the leadership team to formulate short and long-term strategies around various business...

MAM Marketing Brands
Edelweiss brings believability with Irrfan Khan

MUMBAI: Edelweiss Tokio Life Insurance, a joint venture between the Edelweiss Group and Tokio Marine Holdings of Japan, has signed actor Irrfan Khan as the voice of the customer for its product campaign on the recently launched new-age unit-linked insurance plan Wealth Plus.

MAM Marketing MAM
Culture Machine launches leaderboard for publishers

MUMBAI: Digital media company, Culture Machine, has established a leaderboard for publishers across multiple categories in India. Culture Machine’s patent pending tech IP ‘Intelligence Machine’ tracked the month on month performance of Indian channels on YouTube and Facebook to provide a...

MAM Marketing Brands
Digital is as important as traditional: Diageo

MUMBAI: Imagine any musical evening, whether it is soulful, hard core EDM (Electronic Dance Music) or just jam sessions. What goes well with music to get the party started, one may ask? The answer, liquor! Most liquor brands have cashed in on music by associating themselves with various concerts,...

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories