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London (pte038/20.06.2003/18:07) - PR and advertising agency WPP-Group http://www.wpp.com will soon be the new owner of British agency Cordiant Communications. The transaction will be worth 277m pounds (397.7m euros) in shares and debts, as reported by Wall Street Journal (WSJ).
According to WSJ, WPP will be taking over 177 million of Cordiant's 256-million-pound mountain of debt. The remaining 79 million pounds are controlled by Cerberus Capital Management. The conditions of the deal are quite favourable to WPP, as just two years ago Cordiant was worth a billion pounds.
Analysts predict Cordiant http://www.cordiantww.com and WPP will fit well together, with WPP hoping to do a third of its business in the Asian-Pacific region and increase turnover by about 300 million pounds. But in order to achieve its goals, WPP will have to retain Cordiant's clientele. WPP is currently the third largest ad agency in the world, and the move brings it one step closer to catching up with US giants Omnicom and Interpublic.
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