M&C Saatchi rejects £50m offer from Murdoch-backed media group

Core Viewpoint - M&C Saatchi has rejected a £50 million unsolicited offer from Brave Bison for its performance arm, asserting that the offer undervalues the division crucial to its growth plans [1][2]. Group 1: Offer and Rejection - M&C Saatchi received an unsolicited approach from Brave Bison for its performance arm, which provides media planning and buying services [1]. - The company stated that the £50 million offer "fundamentally undervalues" the division, which is essential for its growth strategy [2]. Group 2: Potential Implications - Following the rejection, Brave Bison indicated it might pursue M&C Saatchi's employees and clients, suggesting a potential competitive strategy [3]. - Brave Bison claims that acquiring M&C Saatchi would enhance its digital media capabilities, potentially increasing its profits by over 80% to £17 million [3]. Group 3: Financial Strategies - Brave Bison plans to fund the acquisition through a combination of selling shares to existing and new investors and a debt facility of up to £25 million [4]. Group 4: Market Context - The rejected offer raises the possibility of a bidding war for M&C Saatchi, which has previously resisted hostile takeover attempts [5]. - M&C Saatchi has warned of a sales slowdown due to a weak economy, with its shares down 20% year-to-date despite a recent 5% rise [6].