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
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