Sharewatch: WPP Rises On Cordiant Take-Over Speculation

WPP was seen in focus yesterday, up 6.84%, on continued speculation that it is to make a bid for troubled advertising group, Cordiant. However, analysts have warned that Cordiant is unlikely to receive an offer near its current price.

Cordiant faces further pressure following reports that two senior executives have secretly negotiated contracts guaranteeing bonuses of up to a year’s salary, based on proceeds of disposals or a take-over of the advertising group.

Meanwhile, BSkyB was seen up 1.06% on reports that it may expand its in-house advertising unit to make commercials for outside clients.

Elsewhere, Cable & Wireless was in the spotlight, falling 4.39% after analysts played down the significance of its long awaited strategy announcement, due tomorrow, which has fuelled a doubling in the group’s share price in the past year.

The media market also considered news that the US has waved through controversial legislation, which will allow media giants to extend their domination of broadcast and print media. Critics of the legislation argue it will stifle public debate by concentrating so much power in the hands of a few large conglomerates.

Much of the debate has focused on the growing power and influence of Clear Channel and News Corporation. Clear Channel already owns nearly one tenth of America’s 13,000 radio stations and was criticised earlier this year for systematically organising pro war rallies across its local radio network.

The closing prices of media company shares on Tuesday were: