By Kevin McCauley
Lord Bell said he expects to iron out a deal with Chime Communications by the next of May to purchase part of its slumping PR operation.
The units include Bell Pottinger Sans Frontières, Bell Pottinger PR, Bell Pottinger Middle East, Bell Pottinger PA and Chime's 60% stake in Pelham Bell Pottinger. They generate about 10 percent of Chime’s profit.
Bell, who is chairman of Chime, is leading the management buyout with BellPott co-founder Piers Pottinger. The terms of the deal are based on 2011 profits and subject to obtaining financing and the completion of due diligence.
Chime is expected to retain a 25 percent stake in the venture. Bell expects to finalize the deal next month after shareholders vote on the transaction.
Chime says the deal will enable it to shift focus from a diversified group with strong PR element to a communications and sports marketing business-orientation.
Martin Sorrell, CEO of WPP, which owns a 20 percent Chime stake, called the PR sell-off a bad precedent, adding that “if it is a good deal for Tim, it is a bad deal for Chime,” according to a report in the Guardian.
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