M&C Saatchi PLC (AIM:SAA) has rejected a £50 million offer from Bave Bison (AIM:BBSN) for its Singapore-based performance marketing division, known as M+C Saatchi Performance (MCSP).
The Saatchi board was said to be of the view that the offer "fundamentally undervalues the division and does not reflect the future prospects for the division which forms a core element of the company's growth plans".
It said no talks have been held since receiving the offer.
Brave Bison said it wanted to combine MCSP with its own existing performance marketing operations to form a "scaled digital media challenger to the global marketing networks", which it said would be one of the largest such firms outside the US, with a market-leading presence in UK and Asia Pacific.
It said the acquisition "would be expected to be materially accretive to underlying group earnings per share on a pro-forma basis", funded by way of a mix of an equity placing and a new group bank facility of up to £25 million, for which a letter of support has been received from a UK lender.