Martin Sorrell's S4 Capital confirmed on Monday that it has received a proposal from MSQ, a creative and technology agency owned by One Equity Partners, about a possible combination.
Responding to media speculation, the ad agency said discussions are at a "very preliminary" stage and there can be no certainty that a transaction will be forthcoming.
If agreed, the possible combination would be structured as an acquisition of MSQ by S4 Capital and not an offer under the takeover code for S4 Capital by MSQ, it said.
S4 Capital said it's not expected that a Rule 9 waiver would be required.