WPP Extends Tempus Offer Pending Takeover Panel Decision

In a statement this morning WPP announced that it had extended the deadline on its Tempus offer until midnight on 29 October whilst discussions with the Takeover Panel continue. WPP has sought to invoke the ‘material adverse change’ clause in its initial offer following the terrorist attacks on the US which, it claims, seriously damaged the value of the company.

Analysts and commentators considered it unlikely that the Takeover Panel would rule in WPP’s favour, given that Sir Martin Sorrell continued to buy Tempus shares after the tragedy and that the MAC clause usually relates to incidents which damage a single company’s finances rather than an entire market. In its statement this morning, WPP rather dramatically announced that it has ‘now received information which it believes to be relevant [to the conditions of its initial offer]’

On Monday WPP received clearance under EC Merger Regulation from the European Commission to proceed with the takeover. The commission stated that the combined WPP/Tempus operations would have less than 15% of the total media buying market.

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