The board of TNS has unanimously rejected WPP’s £1.082 billion unsolicited takeover bid made earlier today, saying it “substantially undervalues TNS, even on a standalone basis.”
This is the fourth takeover bid WPP has made and it came just prior to the 7.30am deadline set by the takeover panel for a formal offer for TNS.
TNS has since agreed with GfK to terminate a proposed merger between the two companies (see TNS And GfK In Merger Talks) and has permitted the German firm to advance talks with its third party investor and make an alternative offer.
As a result, TNS intends to postpone indefinitely the shareholders meeting for the Gfk vote on July 18.
Donal Byrdon, chairman of TNS, said: “The Board has unanimously rejected the offer which substantially undervalues TNS. Shareholders should take no action and should not complete any form of acceptance in connection with WPP’s offer.”
GfK has confirmed that it is pursuing an all-cash alternative proposal for TNS, following the WPP announcement this morning, with the involvement of an identified potential source of equity.
In a statement, Gfk said: “While negotiations are at an early stage, GfK has received a strong indication of interest in this transaction.”
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