Chime ad agency buy rings changes

FOUR advertising stars and their staff are up to £30m richer today after veteran spinner Lord Bell revealed plans to diversify his public relations group Chime Communications.

Chime is paying £14.5m in cash and shares for VCCP, an advertising agency responsible for the success of the O2 mobile phone brand as well as campaigns for financial services business ING Direct and Dyson vacuum cleaners.

A further £15.5m is payable, based on future performance. Charles Vallance, Rooney Carruthers, Adrian Coleman and Ian Priest have 20% each of VCCP with another fifth in the hands of 19 senior managers.

'VCCP does compelling work building brands,' said Bell. 'They are not particularly sharp, witty or funny but they are known for beautiful advertising.'

Chime shares fell 2p to a two-year low of 26½p after Chime said it was part-funding the deal through the placing of £5.3m of shares at 26p.

The decision by Chime to buy an advertising agency comes after a weak second quarter of 2005 for public relations.