Samsung C&T says talks with Publicis, others on ad affiliate over

Monday, 20 June 2016 00:00 - - {{hitsCtrl.values.hits}}

Samsung C&T: Publicis among agencies it was in talks with

C&T not currently in talks on Cheil Worldwide

SEOUL/PARIS (Reuters): Samsung C&T Corp and Publicis Group SA said last week that talks on strategic cooperation with Samsung’s ad agency affiliate had ended inconclusively.

Samsung C&T Corp is the de facto holding firm of Samsung Group. A Samsung C&T spokeswoman declined to comment on whether it and other Samsung Group affiliates were considering selling their shares in Cheil Worldwide to Publicis or others. France-based Publicis said earlier this year it was in talks to acquire a stake in Cheil. The French advertising company, the world’s third largest, confirmed in a separate statement on Monday that it had ended discussions with Samsung about a “possible investment” in Cheil Worldwide.

“The strategic relationship with Samsung is as strong as ever and we will continue to work daily with Samsung and Cheil Worldwide to make the brand even more successful,” it said. Local media reported that Samsung Group companies were looking to sell their collective 28.3% stake, worth won 525.5 billion ($448 million) based on Monday’s closing price, to Publicis as South Korea’s top family-run conglomerate looked to restructure its business portfolio and narrow its focus on core business areas such as technology.

Samsung C&T said it was not currently in talks with any parties. Cheil confirmed that Samsung C&T, Cheil’s top shareholder with a 12.6% stake, ended talks with “global agencies” without a concrete result in a separate filing but did not comment further, including the names of the agencies Samsung C&T had held talks with.