WPP Prepares $1.3 Billion Offer For Grey
As time draws closer to the bidding deadline for US advertising firm, Grey Global Group, WPP are thought to be putting together an offer of cash and shares worth around $1.3 billion.
According to a report in The Times, the bid from the advertising giant’s chief executive, Sir Martin Sorrell, will be joined by an offer from private equity firm, Hellman & Friedman and at this stage it is not yet clear whether French advertising group, Havas, will also be putting together a proposal, which must be submitted before today’s deadline of 3.00 pm, New York time.
It is believed by industry analysts that, WPP, the second largest advertising group, will emerge from the race as the winner because Sir Martin is prepared to keep Grey’s founder and dominant shareholder, Ed Meyer, at the helm of the group.
Sir Martin has not yet confirmed that he will definitely be making a bid for Grey but he has been looking over the group’s accounts and reports suggest that his bid will be made up of cash and WPP shares.
It is rumoured that Meyer could be in a for a $34 million cash payout if he succeeds in selling the advertising group for the proposed price of $1.3 billion.
WPP: 020 7408 2204 www.wpp.com
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