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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Martin Sorrell's S4 Capital in 'very preliminary' merger talks with MSQ

(Sharecast News) - Martin Sorrell's S4 Capital confirmed on Monday that it has received a proposal from MSQ, a creative and technology agency owned by One Equity Partners, about a possible combination. Responding to media speculation, the ad agency said discussions are at a "very preliminary" stage and there can be no certainty that a transaction will be forthcoming.

If agreed, the possible combination would be structured as an acquisition of MSQ by S4 Capital and not an offer under the takeover code for S4 Capital by MSQ, it said.

S4 Capital said it's not expected that a Rule 9 waiver would be required.

At 1145 BST, the shares were up 3.5% at 21.95p, having risen to as high as 24.95p earlier.

Russ Mould, investment director at AJ Bell, said a deal could potentially provide "a full stop on a buy-and-build venture which has struggled to gain traction after initially generating excitement".

He noted that the shares are now worth a fraction of what they were at their 2021 peak.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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