Cordiant to Split, Spin Off Saatchi, Bates

Cordiant said it will split into three companies in a move to boost sales and increase profitability at its Saatchi & Saatchi and Bates Worldwide advertising agencies. The British advertising and marketing company said shares in Saatchi and Bates will trade separately on the New York Stock Exchange. The companies will jointly own media buying unit Zenith Media. Cordiant lost business and key staff after the agency’s co-founder, Maurice Saatchi, was ousted as chairman in December 1994, and has since regained stability under Chief Executive Bob Seelert. Yet its sales growth and margins are still outpaced by such rivals as WPP Group, U.S.-based Interpublic Group of Companies Inc. and Omnicom Group Inc. American depositary receipts of Cordiant rose 25 cents to close at $6.625 on the NYSE. Seelert said the spinoff will accelerate sales and profit growth, increase autonomy and accountability at its ad networks, and enable Saatchi and Bates to compete more freely for clients.