AMS claims no investor required
Today is the last day shareholders of Art Marketing Syndicate (AMS) can take advantage of the offer made by the French outdoor group JCDecaux. As the offer of PLN66.00 is less than that offered by Agora, one could be forgiven for thinking that the French realise that their offer will be just as futile as that of the publishers of the daily Gazeta Wyborcza. Or maybe a smaller selection of shares will be sufficient. Tomasz Kawka, MD of AMS thinks that the company does not necessarily need an investor. He says that one was not needed up until now and the company has continued to grow. The only reason he sees for finding an investor is the on going consolidation in Europe and the benefits of being married to a large branch investor. He says that if the company decides it needs an investor then it will set its own terms. The loser in the fight for control of AMS is media giant Agora. Tomasz Kawka says that the publisher had had its eyes on AMS for at least a year. He believes that the attempt to acquire his company failed because Agora only offered a good price and thought nothing of coming to an agreement with management and that was why it was termed a hostile take over bid. Agora did not offer any guide to what it intended to do with the 25 percent stake it could have gained. Agora says that it will no longer try to take a stake in AMS but Tomasz Kawka does not believe this. He sees the acquisition of a stake in his company as being the only way to fulfil the ambitions of Agora to build a strong outdoor presence. Agora however considers that in view of recent legal developments to limit cigarette and alcohol advertising there is no reason to offer more money for AMS. Kawka shares the opinion that this will effect turnover. Tobacco and alcohol advertising makes up getting on for twenty percent of sales. The effects of these laws will be felt in full in two to three years time. Everything depends on the economy and whether it can offer new business to make up for the loss of these products to the outdoor business such as telecommunications, financial services, cosmetics companies and cars. There are about 400 people employed at AMS and some will be laid off because of the predicted downturn.