Martin Sorrell, who stepped down just six weeks ago as chief executive of WPP – the world's biggest advertising group – is attempting a comeback through a new marketing company, Sky News reported on Tuesday.
Sorrell will announce that he is to become chairman of a little-known financial holding company, Derriston Capital, and use it to build a "next-generation marketing services group", the broadcaster said.
Derriston, which was listed on the London Stock Exchange in 2016, did not immediately return a call for comment.
Sky News, citing an unnamed source close to the transaction, said that Derriston would acquire S4 Capital, an entity controlled by Sorrell, and that Sorrell would put £40 million ($53 million) of his own money into the venture.
Institutional investors including Lombard Odier, Miton, RIT Capital Partners, Schroders and Toscafund would add a further £11 million.
Allegations
Sorrell, the driving force behind 33 years of deal-making and relentless expansion at WPP, stepped down on 14 April, after the board investigated an allegation of misconduct.
WPP discontinued the investigation after Sorrell quit. He denied the allegations, but, in a letter to WPP staff published when he departed, he noted, ‘[The] current disruption [was] putting too much unnecessary pressure on the business.’
Present in 112 countries, WPP serves clients including Ford, Unilever, P&G and a string of other major corporations around the world.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
