WPP stake in Chime rises to over 20%

April 14, 2012 - PRLog -- Chime Communications confirmed yesterday evening that long-term shareholder WPP has continued its recent buying of shares so that it now holds over 20% of Lord Bell’s group.  By exceeding the 20% threshold, WPP is now entitled to increase its board representation at Chime from one to two nominees.

Share buying activity by WPP was first reported by the industry research publication "Marketing Services Financial Intelligence" last December, noting that WPP’s holding had risen above the historic level of 15%.

According to "Marketing Services Financial Intelligence", the buying was attributed by Chime insiders to an attempt to restore WPP’s stake after it had been diluted by various share issues to vendors of companies Chime had acquired.  “However, that explanation began to lack credibility as the share buying has continued”, commented editor Bob Willott.  

WPP is not under any obligation to make an outright bid for Chime unless its shareholding passes the 30% mark.  Willott thinks that WPP’s share buying may have been influenced by the attempt being made by the two senior Chime board members Lord Bell and Piers Pottinger to buy out some of the group’s public relations business.

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"Marketing Services Financial Intelligence" provides financial news and analysis about the marketing communications industry, edited by industry expert Bob Willott, an accountant and former special professor at the Nottingham University Business School