WPP Makes Hostile Bid For TNS

WPP has presented a £1.082bn takeover bid to TNS’s shareholders, hoping to see off competition from the German market research company GfK.

According to reports in the Financial Times, GfK was preparing a counter offer last night to rival any deal between TNS and WPP, which is rumoured to involve a financial backer who could allow them to pay 280p a share.

Any offer from GfK is expected to come this morning, although there has not yet been an announcement.

WPP’s bid came just prior to the 7.30am deadline set by the takeover panel for a formal offer for TNS.

Sir Martin Sorrell, chief excutive of WPP, said: “Although our offer may be characterised by some as a ‘hostile bid’, we believe that it is in no way hostile to TNS share owners nor to TNS’s clients and people.”

He added: “In fact, WPP believes it is more committed to maintaining the TNS brand than GfK.”

The two companies have been battling for the market research company TNS for three months, in which time WPP has had three offers rejected, one less than a week ago (see WPP Makes Fourth TNS Bid).

TNS has been recommending a nil-premium merger with GfK, which was first announced in April this year.

Shareholders of TNS, Hedge funds and Fidelity, are expected to have a substantial influence over the outcome of the TNS-GfK vote on July 18.

Shares in TNS closed up 3.25p at 248p while WPP and GfK’s both fell.

WPP: 020 7408 2204 www.wpp.com TNS: www.tnsglobal.com Gfk: www.gfk.com