LONDON: Two large UK agencies held merger talks in the last month, but failed to reach a deal.
Incepta, the financial communications specialist that is home to all the Citigate agencies, and Chime, home to top-ranked UK firm Bell Pottinger, confirmed last week, after stories broke in the British press, that they had held talks.
A source close to the talks told PRWeek that the proposed merger was attractive because it would have created a larger company with more liquid resources and a good geographic mix of offices. But the two could not hammer out the financial terms of the deal in a way acceptable to both companies.
"These things normally come down to two things: money or people," said the source about the negotiations, adding, "I think it was more likely to be the former" that caused the talks to break down.
Incepta's interest in the merger remains strong, and a deal might still be in the works after the new year.
Chime and Incepta's combined market value would be more than $380 million. WPP, which owns 20% of Chime, would have to approve any deal.