Sir Martin Sorrell, chief executive of WPP, last night set out clearly his group’s position over the proposed takeover of Cordiant Communications, saying that the offer on the table will not be revised.
The statement comes after Cordiant’s major shareholder, Active Value, has gradually increased its holding in the group to such a point where it can block the WPP takeover when the deal goes to a shareholder vote. This prompted speculation that WPP would raise its offer as a sweetener to any dissatisfied shareholders. However, in last night’s statement, Sorrell ruled out such a move.
A letter outlining the details of WPP’s takeover plan, which has been endorsed by Cordiant’s Board, was sent to shareholders at the end of last week. Shareholders will meet to vote on the deal on 23 July.
The WPP chairman also told the group’s AGM that there are signs of stabilisation in the advertising and marketing services industry, particularly in the US.
Sorrell has long held the belief that a turnaround in the depressed advertising sector would not begin until 2004 and that it could take until 2008 for growth to return in earnest. He yesterday said that 2003 continues to be another difficult year, but is better than 2002.
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