Publicis buys New York PR firm Kekst

By Megan Davies

NEW YORK/PARIS (Reuters) - Storied New York public relations advisor Kekst & Co on Wednesday sold out to French advertising and communications company Publicis Groupe SA (PUBP.PA) for an undisclosed sum.

Kekst, known for advising on high profile financial takeovers, was founded in 1970 by its current chief executive, Gershon Kekst, 73, and employs about 70 people.

The company, based on Madison Avenue, New York, has advised on more mergers and acquisitions than any other public relations agency over the last two decades, according to data from Corporate Control Alert.

Kekst is famed for advising on deals like the lengthy, frenzied battle for RJR Nabisco, the leveraged buyout in the 1980s which was immortalized in the book "Barbarians at the Gate". Kekst's client in that deal was buyout giant Kohlberg Kravis Roberts.

Kekst-advised deals were significantly above those of its rivals for the first half of 2008 in the United States, according to data from M&A research firm Mergermarket.

"Our business is doing very well, said Jeffrey Taufield, senior partner at Kekst, in an interview. "Revenues for the first half of 2008 were up over a year ago. Also net new clients for the first half of 2008 are up significantly over a year before -- that's across the board, not just M&A."

Publicis, led by Maurice Levy, announced the deal. Gershon Kekst said in a statement that he had known Levy for 20 years.

One industry insider who asked not to be identified, but is not involved with the deal, speculated that the transaction could be worth around $150 million.