Following last week’s news of a takeover bid by tech entrepreneur Vin Murria, M&C Saatchi has rebuffed the approach from its deputy chairman, Murria.
The agency’s independent directors rejected Murria’s move for “corporate governance reasons” adding that it would be of no benefit to shareholders. They also noted that recent client wins demonstrated that the current strategy is working.
Murria’s investment vehicle Advanced Advt has not made a formal offer and has until early February to do so. She is M&C Saatchi’s largest shareholder, with a 12.5 percent stake, while Advanced Advt garnered a 9.8 percent holding.
Advanced Advt has proposed an all-share reverse takeover to absorb M&C Saatchi with investors receiving 1.86 shares in the combined group.
Murria is currently deputy chair of M&C Saatchi, having joined the company in March 2021 as it recovered from a difficult two years, following an accounting scandal in 2019 that prompted four directors to leave and caused its shares to be temporarily suspended.