M&C Saatchi has agreed for takeover talks with Vin Murria's investment vehicle, AdvancedAdvT, to be extended until 31 March.
Previously, stockmarket regulations had imposed a deadline for AdvancedAdvT to "put up or shut up" by 5pm today (3 March), an initial extension granted on 3 February.
But AdvancedAdvT now has until the end of the month (5pm on 31 March) to announce a renewed offer. This deadline can be further extended by M&C Saatchi's independent directors, with the consent of the takeover panel.
The independent directors have said the current offer undervalues the company and its prospects and would "not be recommendable". However, they believe talks should continue.
According to the latest offer (announced on 3 February), M&C Saatchi shareholders would receive 1.939 new AdvancedAdvT ordinary shares and 40p in cash for each M&C Saatchi ordinary share. A mix-and-match facility would allow M&C Saatchi shareholders to vary the proportions of AdvancedAdvT ordinary shares and cash.
Alternatively, AdvancedAdvT would offer an all-share proposal that would mean M&C Saatchi shareholders could receive 2.347 new AdvT ordinary shares for each M&C Saatchi ordinary share.
While M&C Saatchi continues to facilitate access to provide AdvancedAdvT with the opportunity to make a formal offer to the company's shareholders, no revised proposal has been forthcoming.
M&C Saatchi's share price has been trading at around 175p, some way below the hypothetical value of AdvancedAdvT's offer of 230p per share.
Murria is in a relatively strong position as she controls about 22% of M&C Saatchi through AdvancedAdvT's 10% stake and her personal 12% shareholding.