Chime Communications wood panel tested that likely it was in fact in “advanced discussions” with Providence Equity Partners and WPP to become owned total in a 365p per impart present. But Chime confirmed talks were ongoing and focused at least for now on a price of 365 pence per share plus an additional 2.53 pence per share described as an “interim dividend” for 2015.
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The company said an independent committee of the board has been convened to engage in discussions with the FTSE 100 company and the US private equity firm.
The takeover bid is being led by Providence, one of the world’s biggest buyout firms, with WPP, Chime’s FTSE-100 rival, backing the move and rolling over its 20 per cent stake.
WPP and Chime face an August. 26 deadline to make the acquisition or call it off. Chime noted there “can be no certainty” a deal will happen. The company says that a further announcement will be made in due course.
Shares in Chime, which has a market value of 276 million pounds, rose nearly 29 pct on Thursday on the London Stock Exchange.
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Chime Communications reported pre-tax profit of $64.2m for the 2014 year, with operating income of $429.2m.
