TNS rebuffs third approach from WPP

Jul 3 2008 Liverpool Daily Post

TAYLOR Nelson Sofres today fended off a third attempt from advertising and media giant WPP to muscle in on its planned £1.5 billion merger with German rival GfK.

The market research firm told WPP and its chief executive Sir Martin Sorrell to “stop interfering” after snubbing the latest approach, which values TNS at £1.08 billion.

TNS chairman Donald Brydon said: “The board of TNS has been extraordinarily patient with Sir Martin Sorrell. We have now received three proposals from WPP, each of which substantially undervalues the company.”

He accused Sir Martin of attempting to frustrate its merger with GfK to benefit WPP’s “underperforming” Kantar research consultancy.

“It is time for Sir Martin Sorrell and WPP to stop interfering and make their intentions clear,” Mr Brydon added.

TNS opened its books to WPP last month but also criticised the firm's `"press commentary and innuendo'', which it believes are meant simply to frustrate the GfK deal.

The merger with GfK would create a company which operate 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.

TNS provides a range of market research information including focus groups and opinion polls. Its clients include blue chip firms such as HSBC, Microsoft and Unilever, while it also produces supermarket sales data which is closely watched by the City.

WPP, however, has urged TNS shareholders to vote against the TNS deal. It believes a merger between TNS and Kantar would create a company holding the number one or two spot in eight of the world’s top ten markets.

The company wants to combine its own strength in the US with TNS’s European presence, as well as delivering £52 million in savings by 2010.

WPP owns a raft of public relations, advertising and marketing groups - including Ogilvy and Hill & Knowlton - but also has a market research arm called Cantos.