Deal maker Sorrell closes in on Cordiant

Media: Tactical nous and stomach for a fight give Sir Martin upper hand in advertising battle

Sir Martin Sorrell confirmed his reputation as an irrepressible dealmaking tactician yesterday when his WPP advertising group appeared to have finally won control of Cordiant Communications.

Sir Martin, 58, looked like he had seen off opposition from French group Publicis, when WPP announced it was in exclusive talks with Cordiant's lenders over a deal.

A joint statement said WPP was in "exclusive and advanced negotiations with a view to an acquisition of Cordiant by means of a scheme of arrangement."

If the deal is completed it will be the third time in three years that Sir Martin has defeated French competition for a prize asset having already secured Young & Rubicam from under Publicis' nose in 2000 Tempus from Havas.

Sir Martin's manoeuvre into pole position in the Cordiant deal represents a coup as Publicis had looked to be in the lead until only a few days ago. Publicis appeared to concede defeat yesterday with one source close to the talks saying: "We are not prepared to overbid." The French group added that it did not plan to raise its bid because its latest offer was "fair and reasonable".

It is understood that Sir Martin is offering to settle £256m of Cordiant's crippling debts as well as offer a notional £10m to shareholders. Cerberus Capital Management, the US investment group which has a controlling stake in Cordiant's senior debt, has not yet accepted WPP's terms, having long been hoping to strike a deal with Publicis to put Cordiant into administration and then carve up the assets. But WPP hopes to get Cerberus onside.

"We are very pleased we've saved [Cordiant] from administration," said one source close to the WPP camp.

WPP is expected to retain all of Cordiant's businesses if the deal goes through, apart from those divisions where sales have already been agreed. This would give WPP the Bates Worldwide advertising agency and a 25 per cent stake in Zenith Optimedia - the other 75 per cent being owned by Publicis. However, Publicis said yesterday it might buy-out the remaining 25 per cent of Zenith it does not already own.

If WPP does win it will represent a remarkable victory for Sir Martin who has developed the reputation of a man who will fight like an alley cat to win his prize. "He is a complete workaholic. Yes, he plays golf and cricket but his mind is always on his business," says one media executive who knows Sir Martin well.

A skilled negotiator, Sir Martin is a tough man to face across the negotiating table and someone has said negotiating with him is like "trying to stab a dolphin with a banana."

He is not always a popular acquirer with the companies he buys. It was said of Chris Ingrams, the former head of Tempus, that he would "sooner lick the floor of an abattoir" than work for Sir Martin. And Cordiant seemed to be far keener on doing a deal with Publicis than with WPP.

But while he is known as a ruthless operator, he works hard on his image. He returns journalists' calls readily and has developed a good line in friendly banter. He has a regular table at Claridge's where he frequently eats breakfast.

As his stature has grown in the advertising sector he has become a spokesman for the industry with. Indeed his increasingly inventive descriptions of the shape of the sector's recovery having become something of a running gag. First it was "V-shaped" then "U shaped" then "saucer shaped" and then "corrugated bath shaped".

But family is also important to him. As one colleague recalls: "Even when he was off around the world buying up these big agencies like Ogilvy & Mather, he'd make sure he made it back for weekends to watch his sons play cricket."

Another advertising man says Sir Martin likes his employees to have stable, family backgrounds with wives and children but this may have an ulterior motive. "It might be because he likes people to have big mortgages so they are more beholden to him," the executive says.

Short, stocky, and with those trademark round glasses and immaculate suits he looks a bit like an American banker. As a Harvard alumnus this may be deliberate. He is happy to be labelled a beancounter even after nearly 20 years in the advertising industry. "He doesn't mind if people refer to him like that," one colleague notes. "It means they might under-estimate him and that gives him an advantage."