WPP Makes Hostile Bid For TNS; GfK Considers Cash Bid For Audience Measurement Firm In Response
This story was written by David Kaplan.
As expected, WPP Group is making a hostile bid for audience measurement firm Taylor Nelson Sofres, which has rejected the ad holding company's three previous offers, Reuters reports. That in turn, has led UK-based TNS' preferred suitor, Germany audience measurement provider GfK to rethink the combination of equals that was originally being worked out in May. That deal has been valued at 100 million ($154 million) and would create the globe's second-largest audience measurement firm behind Nielsen. Now, GfK says it is considering a cash offer for its UK rival.
As it stands now, WPP is now bidding 1.8 billion ($2.13 billion) for TNS, which met the deadline handed down by the London Stock Exchange takeover panel. Analysts are uncertain whether a cash offer from GfK would ignite a bidding war between it and WPP.
The Guardian: GfK is seeking additional funding to be able to go ahead with a cash offer for TNS. WPP's goal is to merge TNS with its own audience reseacher, Kantar, would create savings of more than 50 million ($98.6 million) annually.
By David Kaplan