TNS To WPP: What Part Of No Don't You Understand?
This story was written by David Kaplan.
Despite increasing its bid to $1.938 billion (996 million) from $1.844 billion (948 million), WPP Group has been rejected a second time by audience measurement firm Taylor Nelson Sofres, The Guardian reported. Although inching closer to the 1 billion mark, Donald Brydon, TNS' chairman, said that the board did not hesitate to reject WPP's revised offer, saying it still "substantially undervalues the company even on a standalone basis." WPP made its first overture to TNS earlier this month, after it announced a "nil-premium" merger with German peer GfK. Analysts believe WPP's Sir Martin Sorrell acted to prevent the combination and the addition of other shareholders could block him from taking at least a controlling stake in the UK audience measurement company. Meanwhile, TNS plans to go ahead with the matchup, arguing that the addition of GfK would add significant value to TNS shareholders.
By David Kaplan