Cordiant may face MBO from FD brass

LONDON: Senior executives at global financial PR firm FD International are understood to be considering a management buyout from marketing-services parent Cordiant Communications within the next year.

LONDON: Senior executives at global financial PR firm FD International are understood to be considering a management buyout from marketing-services parent Cordiant Communications within the next year.

Insiders said directors were dismayed at Cordiant's financial performance, and were considering an MBO once CEO Michael Bungey departs in April.

Cordiant, which declined to comment, has seen a troubled period in recent months. Last week, it was named the most undervalued stock in the media sector by Numis Securities, and in September it saw a group revenue slump of nearly 10% to ?277 million ($438 million).

FD chief Charles Watson denied reports that a group of directors - said to include himself and non-executive chairman Tony Knox - were launching an MBO bid.

He said they were "not currently" in discussions with Cordiant over an MBO, and denied that approaches had been made to Cordiant's board.

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