UK media agency, Tempus, yesterday released interim financial results that were received variously as ‘a decent performance in tough conditions’ to a ‘playing down of the advertising slump’ (see Tempus Results Show Decent Performance In Tough Conditions, But Jobs Likely To Go). Shares finished up 6p at 448½p, propped a little by the anticipated takeover bid from WPP, stock in which dropped by 11p to 514p.
The
Times says that on the face of it, the choice facing Tempus shareholders over the WPP bid looks like a no-brainer. The bid, at 555p per share, values Tempus at more than the market capitalisation and with very poor visibility in the advertising outlook, the group would likely draw strength from a merger with its larger rival.
However, investors may consider selling Tempus shares on the market now, as if the deal falls through – and WPP still has quite a few avenues of retreat – the stock is likely to drop sharply.
Following the withdrawal of Havas Advertising from the bidding battle (see Havas Will Not Renew Tempus Offer), the Tempus board unsurprisingly recommend WPP’s offer to its shareholders. The Times for one reckons they should accept it quick-sharp.
