M&C Saatchi PLC (AIM:SAA) confirmed it received a preliminary approach from an investment vehicle connected with its deputy chairman. The statement came in response to press speculation.
A statement said the company was approached by AdvancedAdvT Limited, a vehicle connected with Murria, perhaps best known as the former chief executive officer of Advanced Computer Software Group.
She is the deputy chair of the advertising group and has a 12.5% stake in the company. AdvancedAdvT announced yesterday it has built a 9.81% stake.
No bid proposal has been received but the board of the advertising agency has been told to expect one in the near term.
M&C Saatchi issued the usual caveat that there can be no certainty that an offer will be made but if one is forthcoming, the board would convene an independent committee to consider it. In the meantime, shareholders are advised to take no action.
The board talked up the potential offer price by claiming that the new strategy announced about a year ago is already delivering, with the company's performance consistently exceeding expectations, demonstrated by a succession of positive trading upgrades.
Shares in the company, which shot up yesterday from 168.55 to 189p, advanced a further 6.9% today to 202p.