WPP Extends TNS Offer Deadline

WPP Group has extended the deadline for its £1.1 billion offer of TNS until 3pm this Wednesday, October 8.

WPP Group, led my Sir Martin Sorrell, announced that valid acceptances of the offer had now climbed to 60.86% of TNS shareholders on Friday, when the previous deadline expired.

Last week WPP warned the market research company that its offer, which valued TNS at £1.14 billion or 259.2p per share at the time, was final (see WPP Warns TNS: The Offer Is Final).

However, according to WPP’s recent statement, “the offer is being extended and will remain open for acceptance” until Wednesday.

The offer, which still stands at 173 pence in cash and 0.1889 of a WPP share for each TNS share, now values TNS at 260.7p per share based on the closing price of 464.5p per WPP share on Friday.

According to reports, if WPP wins 75% of acceptances, he can delist TNS from the stock market.

Meanwhile, the WPP chief executive has urged other media companies to start investing now to get through the recent credit crisis.

Speaking to Media Week, Sorrell said: “The Pavlovian reaction is to cut, but I think the media industry can learn from someone like Rupert Murdoch, who historically has never done that.”

Sorrell recently warned that the economic crisis is likely to last through 2009, though predicted that things may improve in 2010.

He said a recovery, “which will be as rapid as the decline in confidence”, could happen due to the 2010 football World Cup in South Africa, the US mid-term elections and the Shanghai Expo (see Sorrell Warns Economic Crisis Will Not Lift Until 2010).

WPP: 020 7408 2204 www.wpp.com TNS: www.tnsglobal.com