FullSix defends asset sale to Cognetas against WPP

MILAN, Aug 8 (Reuters) - Italian marketing firm FullSix (FUL.MI) defended the sale of its foreign assets to private equity firm Cognetas on Friday, against charges from rival bidder WPP Group Plc (WPP.L) that the deal hurt shareholders' interests.

FullSix said on Thursday it had closed the sale of its foreign activities to its own international management and to Cognetas for 25 million euros ($37.92 million).

Cognetas is an independent mid-market pan-European private equity firm.

But WPP, which itself holds 26.2 percent of FullSix indirectly, said the decision was "deeply damaging" for shareholders and FullSix itself.

The British marketing giant had submitted a bid for the same assets worth 38 million euros.

FullSix slammed WPP's offer as tardy, saying it had come "past the time limit, so much so it should be considered a provocation, just to make headlines."

The offer from WPP "was not binding, but subject to due diligence, and would have required further time, too long and not compatible with company's needs," FullSix said in a statement.

FullSix and WPP have already locked horns last year when WPP Chief Executive Martin Sorrell brought a libel case against FullSix SpA, FullSix SaS and executives Marco Benatti and Marco Tinelli, accusing them of orchestrating a hate campaign against him.

Benatti had been sacked as head of WPP's business in Italy in January, 2006 and is now chairman of FullSix. Marco Tinelli is chief executive of FullSix International.

The dispute was settled at London's High Court and Sorrell accepted 120,000 pounds in damages in March last year.

At 1310 GMT shares in the Italian company were up 8.99 percent at 2.63 euros, giving it a market capitalisation of about 31 million euros. The company said at the end of June its net debt stood at 21.5 million euros as of May 31.

FullSix said the proposal from WPP had a lower value when stripped out of net debt and working capital.

WPP said in a statement on Thursday it had sent its proposal to the board of FullSix on July 31 and had received no answer. FullSix said WPP had received a reply on Aug. 7.

WPP also pointed to the "evident conflict of interest" regarding Tinelli, "who acts at one time as seller (as member of the board of directors) and buyer (as head of the international marketing team at FullSix)."

Benatti owns 46.37 percent of FullSix while Tinelli has a 3.11 percent stake, according to the Web site of Italy's market regulator Consob.

With around 600 employees, FullSix International operates in France, Spain, Portugal, Britain, Germany, the U.S. and China.

FullSix reaps about 75 percent of its revenues outside of Italy, according to Reuters data. (Reporting by Valentina Za and Massimo Gaia)