GfK No Longer Pursuing Offer For TNS

German market research group GfK has announced that it is no longer pursuing a possible offer for TNS.

According to a report in the Financial Times, GfK’s discussions with Apax, the private equity group it hoped would jointly bid for TNS, collapsed over price.

The announcement comes after Sir Martin Sorrell’s WPP made a £1.08 billion hostile takeover bid for TNS in July (see WPP Makes Formal Hostile Bid For TNS).

A successful bid would have put an end to TNS’s planned merger with its Gfk. However, the TNS board has recommended to its shareholders that they reject the offer as it undervalues the company.

Following the WPP bid, TNS agreed with GfK to terminate a proposed nil-premium merger, allowing the German firm to advance talks with Apax and make an alternative offer for the British firm.

GfK still has until September 20 to make a formal offer under the takeover code, although a source told the FT that this deadline “doesn’t leave a huge amount of time” to secure more sources of funding.

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