Kobs & Draft has long been rumored to be unhappy within Cordiant, whosestatement explained the deal by saying, ``The proposed future development of theKobs & Draft Worldwide network is not in line with the financial and investmentpriorities which Cordiant is now following." Cordiant is selling Kobs & Draftfor a total of $27.2 million, including $13.7 million in cash, $9.5 million inloan notes and $4.5 million in preferred stock. Separately, Cordiant has theoption to buy up to 25% of the company. The Chicago-based company now will beknown as DraftDirect Worldwide.
Cordiant blamed much of the company's poor performance on its agencies in theU.S., where first-half revenue fell by 13.5% compared to last year.