Marketing services group Chime Communications "is in advanced talks about a takeover" valuing it at more than £350M ($546M), according to Mark Kleinman of SKY NEWS.
Chime Communications "has received a joint bid approach from Providence Equity, one of the world's biggest buyout firms, and WPP Group, Chime's FTSE-100 rival."
People close to the situation said that a statement confirming that Chime's board "has recommended an offer for the company is expected to be made to the London Stock Exchange as soon as Thursday." One insider said that the bid "was likely to be pitched" at more than 360p-a-share, representing a premium of just more than 30% to Wednesday's closing share price of 274.5p.
A takeover of Chime "would crystallise significant sums for executives" including CEO Chris Satterthwaite and CSM Sport & Entertainment Exec Chair Sebastian Coe. Providence's interest in Chime will make it the first U.K.-based company to be bought by the U.S. private equity group "since it acquired a controlling stake in Ambassador Theatre Group last year." WPP "has also invested significantly in the sports arena, investing in the launch of Bruin Sports Capital," a firm headed by prominent industry exec George Pyne, earlier this year (SKY NEWS, 7/29). In London, Cookson & Moore reported Chime said “there can be no certainty” that WPP and Providence will proceed to make an offer.
Founded in '89 by Timothy Bell, Chime "owns 56 agencies" including VCCP in advertising and Open Health in healthcare communications. But in recent years the company "has become best known for its expansion to become a significant player in the sports marketing world." Another unit, Just Marketing, which Chime bought in '13 and is headed by Zak Brown, "does marketing for motorsports including Formula 1." WPP declined to comment. Providence could not immediately be reached for comment (FINANCIAL TIMES, 7/29).
