INTERNATIONAL NEWS: Cordiant makes strategic acquisition to gainfoothold in Japanese market

LONDON: Cordiant Communications has spent Y1.3 billion ($10

million) to buy a Japanese communications firm operated by US-born

principals in order to beef up its business communications group.



Depending on the firm's performance through December 2005, Cordiant may

pay as much as Y4.9 billion ($39 million) for the acquisition of

92.6% of 19-year-old International Business Information (IBI).



Principals Thomas Zengage and C. Tait Ratcliffe will continue to manage

IBI under Cordiant's business network known as Business Communications

International (BCI) - a division initially formed to house Abernathy

MacGregor before being beaten to the deal by Havas.



IBI's more than 100 employees provide international clients with IR, PR,

and corporate communications counsel.



Cordiant brands in the BCI group are London-based firms Financial

Dynamics, Bulletin, and C&FD. New York-based Morgen-Walke and

Dublin-based Gallagher & Kelly are also member agencies.



To pay for IBI, Cordiant will issue more than four million new Cordiant

shares.



In a company statement, BCI CEO Nick Miles cited a 20% rise in Japanese

stocks held by foreign investors and a 30% rise in direct foreign

investment in Japan as Cordiant's reasons for being interested in the

purchase.



Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in

Would you like to post a comment?

Please Sign in or register.