Shandwick talks included discussion of full offer

Lord Chadlington, the chairman and founder of Shandwick International, the world's largest independent public relations firm, disclosed that the group has held preliminary discussions with major business partners about a range of strategic options ranging from joint ventures to to a full offer for the company. Clifford German reports.

Yesterday Shandwick spokesmen refused to elaborate during the company's close period prior to the publication of full-year results later this month.

They refused to confirm reports that the potential partners included True North, an acquisitive US-based advertising agency best known for its subsidiary Foote Cone and Belding. True North has a 4.5 per cent stake in Shandwick acquired through the acquisition of Golin Harris in 1987. Shandwick shares rose 3.5p to 52p.

Shandwick's profits recovered sharply to pounds 9.2m in the last financial year but were only marginally higher at the interim stage at pounds 3.9m.

Shandwick's biggest single shareholder is the UK Active Value Fund, led by Julian Treger and Brian Myerson, who are reported to have intervened to put pressure on Lord Chadlington, the younger brother of Selwyn Gummer, the former Tory Agriculture minister, to find ways of delivering better value for shareholders. He is supposed to have promised to deliver value within six months from last autumn.

Shandwick is a global business and more than half of the revenue now comes from the US compared with less than 25 per cent in the UK. It suffered problems through its push for growth through overseas acquisitions in the 1980s and ran up debts of pounds 70m which have now been run down to around pounds 40m, finance director Roger Selman said yesterday.

The company has been nicknamed the civil service of the public relations industry because of its size, complex organisation and high staffing levels. It also lacks a major advertising business, which usually offers a more reliable source of earnings than public relations, a volatile and competitive business where accounts frequently follow account directors to rival firms.

A number of US advertising agencies are also known to be anxious to make acquisitions in the UK public relations industry in the drive to complete a global coverage across the full range of media services.

Last year the Shandwick financial public relations division suffered a loss of several senior executives, and a further small exodus took place last month. There were reports a year ago of talks between Shandwick and Lowe Bell, Sir Tim Bell's public relations and advertising group, although these were denied.

The report of discussions coincided yesterday with the announcement of a major reorganisation of the group's operations worldwide, which will merge five separate Shandwick brands into a single brand, with the aim of making it easier for clients to access the most relevant area of expertise. Operations will be reorganised into 10 specialist groups, including brand communications, broadcast consultancy, business and technology, design, healthcare, interactive, internal communications, financial, public affairs and leisure.

Life and Style
Customers can get their caffeine fix on the move
food + drink
Life and Style
techCould new invention save millions in healthcare bills?
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
Voices
Mosul dam was retaken with the help of the US
voicesRobert Fisk: Barack Obama is following the jihadists’ script
PROMOTED VIDEO
Arts and Entertainment
Flat out: Michael Flatley will return to the stage in his show Lord Of The Dance
Michael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Arts and Entertainment
Loaded weapon: drugs have surprise side effects for Scarlett Johansson in Luc Besson’s ‘Lucy’
filmReview: Lucy, Luc Besson's complex thriller
Arts and Entertainment
Jamie T plays live in 2007 before going on hiatus from 2010
arts + entsSinger-songwriter will perform on the Festival Republic Stage
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
News
Jermain Defoe got loads of custard
i100
News
peoplePamela Anderson rejects ice bucket challenge because of ALS experiments on animals
Arts and Entertainment
tvExecutive says content is not 'without any purpose'
News
A cleaner prepares the red carpet for the opening night during the 59th International Cannes Film Festival May 17, 2006 in Cannes, France.
newsPowerful vacuum cleaners to be banned under EU regulations
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Data Centre Engineer - Linux, Redhat, Solaris, SAN, Puppet

£55000 per annum: Harrington Starr: A financial software vendor at the forefro...

.NET Developer

£600 per day: Harrington Starr: .NET Developer C#, WPF,BLL, MSMQ, SQL, GIT, SQ...

Data Centre Engineer - Linux / Redhat / Solaris / Puppet / SAN

£65000 per annum: Harrington Starr: A financial software vendor at the forefro...

Business Analyst

£250 - £350 per day: Orgtel: Business Analyst, Bristol, Banking, Business Obje...

Day In a Page

Air strikes? Talk of God? Obama is following the jihadists’ script

Air strikes? Talk of God? Obama is following the jihadists’ script

The President came the nearest he has come yet to rivalling George W Bush’s gormless reaction to 9/11 , says Robert Fisk
Ebola outbreak: Billy Graham’s son declares righteous war on the virus

Billy Graham’s son declares righteous war on Ebola

A Christian charity’s efforts to save missionaries trapped in Africa by the crisis have been justifiably praised. But doubts remain about its evangelical motives
Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC

Not even Jeremy Clarkson is bigger than the BBC, says TV boss

Corporation’s head of television confirms ‘Top Gear’ host was warned about racist language
Nick Clegg the movie: Channel 4 to air Coalition drama showing Lib Dem leader's rise

Nick Clegg the movie

Channel 4 to air Coalition drama showing Lib Dem leader's rise
Philip Larkin: Misogynist, racist, miserable? Or caring, playful man who lived for others?

Philip Larkin: What will survive of him?

Larkin's reputation has taken a knocking. But a new book by James Booth argues that the poet was affectionate, witty, entertaining and kind, as hitherto unseen letters, sketches and 'selfies' reveal
Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?

Waxing lyrical

Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?
Texas forensic astronomer finally pinpoints the exact birth of impressionism

Revealed (to the minute)

The precise time when impressionism was born
From slow-roasted to sugar-cured: how to make the most of the British tomato season

Make the most of British tomatoes

The British crop is at its tastiest and most abundant. Sudi Pigott shares her favourite recipes
10 best men's skincare products

Face it: 10 best men's skincare products

Oscar Quine cleanses, tones and moisturises to find skin-savers blokes will be proud to display on the bathroom shelf
Malky Mackay allegations: Malky Mackay, Iain Moody and another grim day for English football

Mackay, Moody and another grim day for English football

The latest shocking claims do nothing to dispel the image that some in the game on these shores exist in a time warp, laments Sam Wallace
La Liga analysis: Will Barcelona's hopes go out of the window?

Will Barcelona's hopes go out of the window?

Pete Jenson starts his preview of the Spanish season, which begins on Saturday, by explaining how Fifa’s transfer ban will affect the Catalans
Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

We know all too much about the cruelty of Isis – but all too little about who they are

Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
Neanderthals lived alongside humans for centuries, latest study shows

Final resting place of our Neanderthal neighbours revealed

Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
Scottish independence: The new Scots who hold fate of the UK in their hands

The new Scots who hold fate of the UK in their hands

Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

Blight club: Britain's ugliest buildings

Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape