Tennessee Firm Boosts Stake in Saatchi to 10%
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WASHINGTON — A Memphis, Tenn.-based investment management concern increased its stake in British advertising conglomerate Saatchi & Saatchi Co. to 10.24%, it was disclosed Tuesday.
In a filing with the Securities and Exchange Commission, Southeastern Asset Management Inc. said it paid $79.7 million over the last two months to buy 3.4 million ordinary shares of Saatchi & Saatchi, the world’s largest advertising holding company.
That increased Southeastern’s holdings to 5.3 million American Depository Receipts, (ADRs)--or 16.1 million ordinary shares--constituting 10.24% of the outstanding shares.
Instead of buying shares in foreign companies through overseas securities markets, an American individual or company can buy shares in the form of ADRs, which represent a receipt for foreign shares held by a U.S. bank. ADRs entitle the shareholder to all dividends.
Contacted by Others
Southeastern, an investment adviser to individual and institutional clients including retirement plans and endowment funds, said it was buying the shares for “investment purposes on behalf of client accounts.”
Southeastern said it was making the public filing because it “has been contacted by one or more third parties” about restructuring transactions “other than a change of management or control” of London-based Saatchi.
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