(Reuters) - Martin Sorrell is staging a comeback just six weeks after he was ousted from WPP (WPP.L), using the same formula as in the 1980s when he transformed a shell company into the world’s biggest advertising group.
One of Britain’s best known businessmen, Sorrell said he would invest 40 million pounds of his own money into Derriston Capital (DERR.L) while institutional investors have pledged 150 million pounds to buy marketing companies.
The London-listed company will be renamed S4 Capital, a Sorrell entity, in a reverse takeover which is likely to be closely watched in an industry facing questions over whether the ad guru’s model is still the best way to deliver adverts, marketing, research data and media buying in a digital world.
WPP competes with U.S. groups Omnicom (OMC.N) and IPG IPG.L, France’s Publicis (PUBP.PA) and Japan’s Dentsu, while thousands of small independent companies provide everything from ads for mobile phones to creative work and data analytics.
“S4 Capital is a company that aims to build a multi-national communication services business focused on growth,” the 73-year-old said. “There are significant opportunities for development in technology, data and content. I look forward to making this happen.”
Derriston Capital, a little-known two-year-old listed shell company, said Sorrell would become executive chairman while the deal will lead to the issue of 591,967,000 new shares.
Taking charge of a listed shell company repeats the tactic Sorrell used in the 1980s when he took a stake in Wire and Plastics Products, a maker of shopping baskets, and used it as
