Shares in WPP rose to 686½ this morning as Lehman Bros reiterated its buy rating following an ad agency seminar yesterday. ABN AMRO reports that WPP may still see marginal improvements next year despite the ‘dull’ ad market. WPP CEO Sir Martin Sorrel believes that the current climate indicates a structural/fundamental shift in the ad market rather than a v-shaped recession.
WPP and ABN AMRO agree that global advertising will continue to decline in 2002, ABN sets the figure at -1.9% growth.
WPP has also announced the acquisition of German sports marketing agency Global Sportnet. The company had revenues of DM 25.9 million for the year to 31 December 2000 and will become part of WPP’s Branding & Identity, Healthcare and Specialist Communications division. The acquisition is expected to be completed in January 2002 and is conditional, amongst other things, on the approval of the German Federal Cartel Office.
WPP said “The acquisition of Global Sportnet continues WPP’s strategy of establishing a leadership position in the faster growing sectors of communications services.”
