ADVERTISING agency WPP yesterday unveiled plans to buy its debt-laden rival, Cordiant, in a deal that will value the company at only £10m.
WPP, which is headed by Sir Martin Sorrell, beat off competition from French advertising group Publicis to secure the backing of Cordiant's board.
The acquisition will see WPP take on Cordiant's debt of £256m, with 2.4p a share, or £10m, paid to the company's beleaguered shareholders.
In its heyday, shares in Cordiant traded at 400p but have since fallen to 2.75p.
At the close of trading yesterday shares in WPP had fallen 23.5p to 467.5p.
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