Sharewatch: WPP Rises On Cordiant Deal
WPP was seen in focus, up 2.63%, despite news Active Value, the investment group seeking to block the acquisition of Cordiant Communications, has increased its stake in the troubled advertising group once more (see Sorrell Stands Firm On Cordiant Deal).
Elsewhere Reuters was seen in the spotlight, up 4.85%, benefiting from optimism amongst traders about its results due later this month. The news that US judges have dismissed claims against four top investment banks, including Merrill Lynch, that their stock analysts were to blame for millions of pounds of investor losses following the market crash, cheered the market. Reuters is dependent on the revenue provided by these investment banks.
Investors were also seen digesting news that the Government has ended the deadlock over the relaxation of the media ownership regulations and has agreed to accept Lord Puttnam’s plurality test amendment to the Communications Bill (see Government Ends Media Ownership Deadlock).
Broader market sentiment was encouraged by positive economic indicators from Japan and positive movements on Wall Street.
The closing prices of media company shares on Wednesday were:
