WPP tables TNS takeover offer

Jul 9 2008 Liverpool Daily Post

SIR Martin Sorrell, the boss of media and advertising giant WPP, today unveiled a £1.08 billion takeover offer for market research firm TNS.

The 260.6p-a-share proposal has been tabled direct to TNS shareholders after the target’s board declined to enter into talks with Sir Martin.

TNS is instead backing a £1.5 billion merger with German rival GfK and said the proposal from WPP substantially undervalued the business.

WPP's decision to press ahead with an offer was announced just before a 7.30am ``put up or shut up'' deadline imposed by the Takeover Panel.

Sir Martin said: “Although our offer may be characterised by some as a hostile bid, we believe that it is in no way hostile to TNS share owners nor to TNS’s clients and people.

“In fact, WPP believes it is more committed to maintaining the TNS brand than GfK. The offer from WPP is a superior alternative to what is, in effect, a nil-premium reverse takeover of TNS by GfK and a merger of unequals.”

The TNS merger with GfK would create a company operating across 111 countries and a ``global leader'' in the market information industry.

TNS shareholders - who will vote on the tie-up at a meeting on July 18 - would hold around 50% of the shares of the newly-enlarged group.