WPP Extends Tempus Offer As Appeal Is Considered
WPP has again extended its acquisition offer for UK media buying group Tempus, as the Takeover Panel considers the company’s appeal against the dismissal of the Material Adverse Change clause it was hoping to invoke (see Takeover Panel Rules Against WPP).
WPP was hoping to withdraw from the agreed takeover offer on the grounds that the prospects for Tempus’ business have significantly deteriorated since it made its 555p per share offer (see WPP Seeks Escape From Tempus Deal).
All media groups have seen outlooks grow weaker following a downturn in advertising and the economy and the exacerbating effects on this by the 11 September attacks in the US. However, the Takeover Panel believes that the case for Material Adverse Change in Tempus specifically is not sufficient.
The appeal is now being considered by the Panel and the offer will close on 5 November unless WPP’s appeal is successful or a further extension is granted.
