Deadline Approaches For Tempus Shareholders’ WPP Decision
The deadline for shareholders in Tempus to accept the £437 million takeover bid by WPP is set for 3:00pm today. It is expected that the 90% acceptance level required to seal the deal will be easily achieved, although there is still some speculation that WPP may attempt to pull out of the deal even if it is accepted by Tempus investors.
It is thought that Martin Sorrell, WPP’s chief executive, may make a case for material adverse change in the Tempus business since his offer was tabled, thereby enabling WPP to withdraw from what is otherwise a legally binding agreement. However, this tactic may already be scuppered, given that WPP has continued to buy shares in Tempus, via the market, for the last few weeks and now holds a 25% stake in the group.
Not surprisingly, the Board of Tempus has recommended the offer to its shareholders. It is probably in investors’ interests to accept the deal as a collapse would undoubtedly send Tempus’ share price plummeting.
