WPP Group has confirmed that it has secured 81.8% of TNS shareholders’ backing for its £1.1 billion takeover bid.
Last week, WPP extended TNS’ deadline to 3pm yesterday afternoon, after receiving just 60.86% of valid acceptances as Friday’s deadline expire (see
WPP Extends TNS Offer Deadline).
In response, the TNS board urged shareholders to accept the offer, warning that as WPP only needed 75% to make its offer unconditional to further acceptances, shareholders who failed to accept “could as a result own a minority interest in an unlisted company”.
Sir Martin Sorrell, chief executive of WPP, said: “We are delighted to be a step closer to welcoming such a fine company with strong people, clients and brands that will enhance our client offering.”
The majority of shareholders who have accepted the offer have chosen to sell their shares for 179p in cash and 0.1756 of a new WPP share, rather than the WPP share-only option, according to reports.
The deadline for future acceptances is October 22, however, WPP has withdrawn the cash option for those who haven’t accepted the offer yet so they will only be able to take new WPP shares.
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