WPP Firms-Up on Hostile bid for TNS
According to the Reuters news agency this morning, the WPP Group has made a hostile 1.08 billion pound ($2.13 billion) bid for Taylor Nelson Sofres, challenging TNS’ agreed merger with GfK Holdings AG.
TNS, which is the world’s third-biggest market research company, rejected an approach at the same price from Martin Sorrell’s WPP last week. According to Reuters, “A source familiar with the situation told Reuters on Wednesday that Germany’s GfK was considering making a counter-offer for TNS with a co-investor to head off the WPP bid and safeguard its own deal.”
“A GfK spokesman declined to comment on this but said the group was still convinced that a merger with TNS was the best way forward for both companies.
WPP is offering 173 pence in cash and 0.1889 of a new WPP share which, based on Tuesday’s closing WPP price of 464p, values each TNS share at 260.6p.
TNS traded at 261 pence on Wednesday. WPP was down 2.7 percent at 452 pence at 3:40 a.m. EDT.
According to Reuters, many analysts expect some TNS shareholders to be tempted by WPP’s offer, which has a high cash component at a time of economic and stock market uncertainty, but also say WPP could return with a higher bid – between 280p and 300p.
