M&C Saatchi rejects $67 million bid for media unit, calls offer “undervalued”
British advertising group M&C Saatchi has rejected a £50 million ($67 million) unsolicited takeover offer for its media division from rival Brave Bison, saying the bid “fundamentally undervalues” the business.
Shares in M&C Saatchi rose around 4.4% to 142 pence following the announcement on Monday, while Brave Bison’s stock fell nearly 2%, News.Az reports, citing Reuters.
The media arm in question, M&C Performance, is the company’s digital media planning and buying unit and has become a key driver of growth as advertisers continue shifting budgets to digital platforms. The division, whose clients include Amazon and Meta, grew 5.4% in the first half of the year.
M&C Saatchi stressed that the unit remains central to its long-term strategy and confirmed no deal discussions are taking place.
Analysts noted that Brave Bison’s offer underscored the value of M&C Saatchi’s portfolio. Brave Bison, backed by Rupert Murdoch and former Conservative Party treasurer Lord Ashcroft, has been aggressively expanding and has acquired five companies so far this year. It had planned to merge M&C Saatchi’s media unit with its own performance marketing operations to form one of the largest independent players outside the United States, with strong presence in the UK and Asia-Pacific markets.
Brave Bison’s shares have nearly doubled this year, boosted by acquisitions and major client wins including Primark, Tottenham Hotspur FC, EA Games, and Guinness World Records.
Despite the rejection, M&C Saatchi has been navigating a challenging advertising environment. The company issued a sales warning in September as clients scaled back spending amid economic uncertainty in the UK. M&C Saatchi's shares have fallen around 20% this year and the company currently holds a market value of roughly £166 million.
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