Sharewatch: WPP Falls As Cordiant Rebels Gain Ground

WPP was seen under pressure yesterday, down 2.48%, as its bid to take-over troubled advertising group, Cordiant, appeared increasingly tenuous. Investment firm, Active Value, is seeking to block the bid and it is understood that the group has increased its stake in Cordiant to 24.5%, just 0.5% short of the amount it would need to block the deal. Cordiant was seen down 8.33%.

Trinity Mirror was also seen under pressure, down 1.13%. Earlier this week its was reported that the group is planning to sell its newspaper titles in Northern Ireland (see Trinity Mirror May Sell Irish Titles).

Broader market sentiment was dented yesterday after a second day of profit taking pushed stocks lower. All eyes will be on the US Federal Reserve, which announces a decision on interest rates after the close today.

A slightly above expectations measure of US consumer confidence brought some bullish sentiment to the market. However, news of further casualties in Iraq and hawkish comments from US defence secretary, Donald Rumsfield, that the increasingly indefinite and far-reaching “war on terror” is far from over, weighed heavily on the market.

The closing prices of media company shares on Tuesday were: