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