WPP Stands Firm On Cordiant Deal
Sir Martin Sorrell, chief executive of WPP, last night set out clearly his group’s position over the proposed takeover of Cordiant Communications (see WPP Seals £266m Cordiant Takeover), saying that the offer on the table will not be revised.
The statement comes after Cordiant’s major shareholder, Active Value, has gradually increased its holding in the group to such a point where it can block the WPP takeover when the deal goes to a shareholder vote (see Active Value Takes 25% Of Cordiant Shares). This prompted speculation that WPP would raise its offer as a sweetener to any dissatisfied shareholders. However, in last night’s statement, Sorrell ruled out such a move.
A letter outlining the details of WPP’s takeover plan, which has been endorsed by Cordiant’s Board, was sent to shareholders at the end of last week. Shareholders will meet to vote on the deal on 23 July.
