Sweden in routine review of CIA bid

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STOCKHOLM -- Sweden's competition authority has responded to market speculation that it would block the acquisition by the U.K.-based CIA, Europe's second largest media buying independent, of Media Marketing Ab, Sweden's largest independent media buying and advertising agency.

Competition officials said that the authority was examining the "substance and content" of the takeover, and what it would mean for competition within the domestic media buying and advertising sector.

"What we are doing is routine. Right now we cannot see anything in this takeover which we object to. It is misleading therefore, to suggest we have already taken a position," says a Competition Authority spokesman.

CIA paid $ 48.2m for Media Marketing and its parent holding company Marmedia BV, which had revenues of $350m in 1996. Of this $16.2m will be paid in cash and the rest in shares in CIA. The takeover also includes Media Marketing subsidiaries in Denmark and Norway.Listed on the London Stock Exchange, CIA had billings in 1996 of $1.7bn.

Copyright May 1997, Crain Communications Inc.

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