Chime spends £44m on buying JMI amid a dispute with Sir Martin Sorrell's WPP
Saturday 26 October 2013
Chime Communications yesterday spent up to £43.7m on JMI, a US sports-marketing firm which specialises in motor racing.
However, the deal was overshadowed by a row with its top shareholder WPP, which plans to sell its stake in Chime. The dispute pits ex-Olympics supremo Lord Coe, the chairman of Chime's sports-marketing division, against WPP's boss Sir Martin Sorrell.
WPP did not oppose the acquisition of JMI, in which WPP also had a minority stake, but Sir Martin's camp wanted to increase its 21 per cent shareholding in Chime. WPP asked for 29.9 per cent and, when that offer was rebuffed, 27.5 per cent. Chime's board offered a compromise of 24.9 per cent but the two sides did not agree. It is understood the Chime camp wanted all its shareholders to have a fair chance to participate in a fundraising for the acquisition.
Chime raised £25.6m in a placing at 300p a share before yesterday's stock-market opening. WPP did not participate, so its stake has fallen to 18 per cent. It plans to "explore" a sale of its shares, worth an estimated £58m, "subject to price".
Chime shares tumbled 6.25p to 316.75p, although they remain close to a record high.
Numis Securities and HSBC advised on Chime's placing.
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 PornHub turns masturbation into energy in bid to save the planet
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
PornHub turns masturbation into energy in bid to save the planet
Spiritual leader allegedly manipulated 400 men into removing testicles to be 'closer to God'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
End of the licence fee: BBC to back radical overhaul of how it is funded
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...