WPP And Y&R May Be Nearing Deal

WPP is on the verge of agreeing a take-over deal for US advertising company Young & Rubicam (Y&R), a move which would create the world’s largest advertising group. The possibility of the talks reaching fruition has not been confirmed by either company, but the national press are unified in expecting an announcement soon.

WPP confirmed that talks were happening nearly two weeks ago (see WPP Confirms Discussions With Y&R), but the day after the announcement talks broke down. This was rumoured to be because Y&R wanted too much control during the first year of take-over. A week later talks were said to have been resumed (see Sharewatch) but there remains a question mark over the value of WPP’s offer, as the company’s share price has dropped during the last few days trading (see Sharewatch).

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