Sir Martin Sorrell’s WPP Group has made a £1.08 billion formal hostile takeover bid for Taylor Nelson Sofres to shareholders, following four earlier rejected bids.
WPP hopes the bid will finally put an end to TNS’s planned merger with its German rival company, Gfk.
WPP’s statement said: “WPP announces that the offer document containing the formal offer for the entire issued and to be issues share capital of TNS is being posted.”
However, Gfk came back with its own statement, confirming that it “is continuing to actively pursue an all-cash offer for TNS” and hinted that “discussions in relation to this possible offer are progressing positively”.
The statement went on to say: “Gfk therefore urges TNS shareholders to take no action in relation to WPP’s offer for TNS at this time.”
This comes less than a month since the board of TNS unanimously rejected WPP’s unsolicited takeover bid, which valued TNS at 260p a share, saying it substantially undervalued the company.
At the time, TNS also agreed with GfK to terminate a proposed merger between the two companies, but urged the German firm to advance talks with its third party investor and make an alternative offer.
However, in the latest Gfk statement, it said: “no assurance can be given that an offer will be made,” despite the companies positive hints that a deal would take place.
Reports suggest that if WPP’s recent bid is successful, the group will sell the television-monitoring arm of TNS, TAM (Television Audience Management), as it is direct competition with its own service, which is operated by Millward Brown.
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