Cordiant breakup said to result in FD talking about MBO

LONDON: FD International's bosses are poised to launch a management-buyout bid as parent firm Cordiant Communications began breaking up the troubled marketing communications firm this week.

LONDON: FD International's bosses are poised to launch a management-buyout bid as parent firm Cordiant Communications began breaking up the troubled marketing communications firm this week.

Insiders at FD International, which operates FD Morgen-Walke in the US, said that while negotiations have yet to begin, the management team is hoping to see an MBO launch before the summer.

Cordiant, which appointed Nigel Stapleton as chairman last week, is in talks to sell its Australian operation in a move widely seen as the beginning of a long-awaited break-up plan.

It is widely rumored that the firm aims to sell off many of its valuable assets to shore up its battered balance sheet.

Sources suggest that Cordiant would consider selling FD International, which also owns flagship UK agency Financial Dynamics, alongside a number of other candidates for disposal, including a minority stake in Zenith Optimedia and a controlling share in German advertising agency Scholz & Friends.

FD International CEO Charles Watson declined to comment on the MBO.

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