Troubled advertising group Cordiant Communications has said potential buyers are unlikely to bid for the firm at its current market value, triggering a fresh slump in its share price.

The company, the UK's second-biggest advertising firm, said none of the buyout proposals currently on the table was likely to result in an offer "at the current share price".

City investors reacted with dismay, marking Cordiant shares down 31.5% to 6.5p in early trade - a fraction of their March 2000 peak of 406p.

Cordiant shares, which lost nearly two thirds of their value last month after drinks group Allied Domecq withdrew its account, have now fallen by over 90% in the past year.

Hard times

The firm has been hit hard by a downturn in advertising spending as major corporations react to global economic uncertainty by slashing their marketing budgets.

The company, faced with dwindling revenues and saddled with �249m in debt, is thought to have been approached by a number of rivals, with France's Publicis tipped as one potential bidder.

Cordiant said it was pressing ahead with plans to sell off non-essential businesses - which include its public relations arm Financial Dynamics - and was also pursuing financial restructuring options.

"Constructive" talks with lenders were continuing, it added.