Directors plan MBO of Financial Dynamics

The management team at Financial Dynamics is negotiating to buy back a controlling interest in the consultancy from parent company GGT.

The management team at Financial Dynamics is negotiating to buy

back a controlling interest in the consultancy from parent company

GGT.



A group of directors led by FD chief executive Nick Miles is understood

to have been in negotiations with the ad agency and is believed to be

close to reaching a deal. An announcement is expected to coincide with

GGT’s annual report, due at the end of January.



GGT acquired FD as part of its takeover of French ad agency BDDP, which

previously owned the financial PR firm, in September 1996. It owns all

of the equity in FD but profits are shared fifty-fifty by the ad agency

and FD directors.



While FD was assured full operational independence by GGT at the time of

the BDDP takeover, industry sources suggest that both parties are uneasy

about FD’s fit within GGT’s consumer-orientated culture.



GGT’s other PR companies are: Life PR and French agency Compagnie

Corporate.



One financial PR source said: ’You can understand where Life PR fits

into GGT’s structure but not FD.’



A management buy-out would avert the sale of FD to a third party.

However, this option is thought to remain a possibility.



Miles and GGT chairman Michael Greenlees were unavailable for comment as

PR Week went to press. FD’s chairman Tony Knox said: ’We’re part of a

public company so I can’t comment on speculation.’



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.