Vin Murria’s Advanced AdvT has dropped out of the race for M&C Saatchi after its final offer lapsed on 30 September.
M&C Saatchi had consistently recommended shareholders to reject the offer, with chief executive Moray MacLennan insisting that the agency wants to stay independent. Murria and Advanced AdvT first launched a bid for M&C Saatchi in January.
In total, 36% of shareholders voted in favour of the deal, however not including Murria and the stake already owned by Advanced AdvT, the offer only had the support of 13.2% of shareholders.
In a filing on the London Stock Exchange, M&C Saatchi said it will meet to discuss the rival offer from Next 15 in Q4 of this year.
Next 15, which threw its hat in the ring in May with a surprise bid, is currently waiting for regulatory approval from the US Committee on Foreign Investment (CFIUS).
M&C Saatchi, which initially welcomed Next 15’s offer, withdrew its support after only four weeks after Next 15’s share price fell.
The agency reiterated this stance on 30 September, saying it is currently “unable to recommend it to M&C Saatchi shareholders due to the current Next 15 share price”.
Meanwhile, Next 15 chief executive Tim Dyson last week expressed hope for the company’s takeover bid after it reported a strong set of interim results for the first half of 2022.
Analysts at Peel Hunt said in a communication on 3 October that Murria and Advanced AdvT, which collectively own 22% of M&C Saatchi, are still key to Next 15’s offer.
They argued that without the support of Advanced AdvT, which has previously stated it will reject the offer, Next 15’s chances of succeeding are low, as it needs 75% of shareholders to vote in favour of a takeover.