Sir Martin is considering a bid

WPP is looking into the finances of the loss-making advertising group with a view to a move.

Cordiant's share price plunged in April this year after it lost the crucial account of drinks giant Allied Domecq.

It is burdened with heavy debts and access to emergency funds will end on 15 July.

WPP may face competition for Cordiant from firms such as France's Publicis, and a decision is expected on the company's future by the end of the week, analysts say.

Advertising downturn

Cordiant is in the process of selling public relations shop Financial Dynamics and German ad agency Scholz & Friends to the firms' management.

Speculation about Cordiant's future increased in April after its share price fell by two thirds in one day when it lost the Allied Domecq contract.

The firm has been hit hard by the downturn in advertising spending, which has been caused by major corporations cutting their marketing budgets in the face of global economic uncertainty.