Tempus Says ‘No Grounds’ For WPP Withdrawal

Tempus Group have, this morning, issued a response to WPP’s attempts to withdraw from their proposed offer for the group last week. Tempus said: “On the basis of the submission made by WPP, which Tempus has been permitted to see, the Board of Tempus is firmly of the view that there are no grounds for allowing the material adverse change condition to be invoked.”

The Tempus board made a formal submission to the Takeover Panel last night and is clearly keen to see the WPP deal come to fruition. It is not known whether Tempus has provided key financial reports with the submission, information which WPP is understandably keen to get hold of.

Although the WPP offer is considered by many to grossly over-value Tempus, the Material Adverse Change clause relates only to specific company changes and, as the entire market was affected by the incidents of September 11th, analysts doubt whether it will be sympathetic to WPP’s request.

Subscribers to MediaTel Insight can access more national and international media analysis, forecasts and news. For subscription details please visit the site.