Chime Communications raises £12m for a double buy

Lord Bell's Chime Communications today snapped up Sidcup-based sports marketing firm Icon and bought out a minority interest in its controversial Bell Pottinger public relations subsidiary in the Middle East.

Chime raised £12.25 million in new shares from the stock market - primarily to buy Icon, whose clients include Uefa, Fifa and the Ryder Cup, for an initial outlay of £11 million. Bell is keen to expand in sports marketing, which he sees a boom area.

The remainder of the funds are being used to buy minority stakes in Bell Pottinger Middle East and market research firm Facts International.

Bell Pottinger has come under scrutiny for its links to Arab regimes during the recent uprisings in the region. Clients have included the Bahrain Economic Development Board.

The £12.25 million placing at 260p a share was at a near-3% discount to Chime's price last night. The shares were today unchanged at 267p.