Sharewatch: Cordiant Bid Pushes WPP Higher

Week on week analysis of the media sector revealed that WPP remained in focus up 0.42% week on week after strengthening its proposed take-over bid for Cordiant Communications.

Late last week the group cleared one of the final hurdles en route to the acquisition of Cordiant Communications by agreeing to buy out the outstanding debt held by a US investment fund (see WPP Raises Stakes In Cordiant Tug Of War). According to the Financial Times, Cordiant’s shareholders will vote on the WPP take-over offer minutes before they consider a rival plan for the advertising group.

Elsewhere, UBC was seen in focus, up 20.75% week on week after releasing results, which revealed it had broken into operating profit in its last financial year (see UBC Moves Into Profit In 2003, Airtime Outlook Mixed).

Investors will also consider annual figures from Zenith Optimedia, which suggest that US advertising growth will gather pace over the next three years. However, the group also warned that the European outlook is more uncertain, with even slower growth predicted for the UK advertising market in 2004.

The closing prices of media company shares on Friday were: