Sharewatch: WPP Sees Rise As Grey Bid Considered

WPP performed well yesterday, increasing its share price by 1.02% to close at 493p as the global advertising giant revealed it is considering a £500 million rights issue preceding the purchase of American advertising group, Grey Global.

Chief executive of WPP, Sir Martin Sorrell, said last week that he is looking at Grey’s books, but did not confirm whether he would be making a bid for the last independent advertising network. He also pleased investors by announcing that half-year revenues had reached over £2 billion for the first time ever, spurred by a significant recovery in the advertising industry (see WPP Considering £500 Million Rights To Buy Grey).

Elsewhere, newspaper publisher Johnston Press also saw a rise, climbing by 2.58% ahead of first half figures published tomorrow. The company has excited investors by twice lifting its profit forecasts this year, and hinting at an upturn in job advertising, an area in which Johnston is particularly active.

Satellite superpower BSkyB was also on the up, rising by 1.07% to close at 471˝p as the company announced an exclusive three-year deal to become the first UK broadcaster to screen live coverage of the new A1 Grand Prix motor racing series. The sport will be shown on the company’s Sky Sports channels (see Sky Sports Secures Exclusive Rights To New A1 Grand Prix).

The FTSE 100 put in a good performance yesterday, rising by 0.8% to close at a two-week high of 4,405.3, while the FTSE 250 rose by 1% to finish at 6,016.6.

The closing prices of media company shares on Monday were: