Cordiant denies PR arm sell-off

LONDON - Cordiant Communications has ruled out selling its leading City PR brand FD International as speculation mounts over chief executive Michael Bungey's expected resignation and a possible firesale of company assets.

A spokesman for the marketing services group denied rumours the company was to sell some assets in a bid to revitalise its business -- a move which reports suggest would coincide with Bungey's resignation, expected to be announced with Cordiant's full-year results set for release tomorrow.

"Financial Dynamics is not being sold and Cordiant is not considering selling any of its business," the spokesman insisted.

The company refused to comment on Bungey's expected resignation, adding it was "inappropriate to do so in a closed period".

Bungey's unconfirmed departure is widely reported to come as a result of shareholder pressure to revive the business after a year of disastrous results.

The company's share price has dropped by half over the summer following the loss of a number of major advertising clients, such as the US creative and media account for Hyundai, believed to be worth £300m.

Bungey is expected to be replaced at the helm by David Hearn, who is currently chairman and CEO of Cordiant's ad arm Bates Worldwide.

Hearn joined Bates in March from Australian food group Goodman Fielder, where he was CEO.

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