Hill & Knowlton Reportedly May Buy Byoir Firm

Hill & Knowlton, the nation’s second-largest public relations firm, confirmed Monday that it has been talking with officials of No. 3 Carl Byoir & Associates but declined to say what the topic was.

The Wall Street Journal quoted sources Monday as saying that officials from the Foote, Cone & Belding Communications Inc. advertising agency, which owns Byoir, approached Hill & Knowlton over the weekend about selling Byoir operations accounting for $15 million to $20 million of Byoir’s $30-million fee income.

Robert L. Dilenschneider, Hill & Knowlton’s president and chief executive, said in a statement late Monday afternoon that he could “confirm that we have had intensive discussion with officials” of Byoir and Foote, Cone “for the past few days.”

“No definitive action has been taken. It is unlikely that we will have anything to report today (Monday),” the statement said.

Don Beaton, a senior vice president at Hill & Knowlton, said he could not elaborate on the statement, and he specifically declined to say whether the talks involved a merger or takeover.

The newspaper said that while no terms had been reached on price as of Sunday, one source said the deal would likely be worth between $10 million and $15 million.

Charles M. Lodovico, a senior vice president with Foote, Cone, said his firm had no comment on the report.