Sorrell ‘Disappointed’ as TNS Rejects £1bn Bid

May 6 2008

WPP CEO Sir Martin Sorrell has said that he is surprised and disappointed by TNS’ ‘cavalier’ rejection of his £1bn part-cash / part-share offer to purchase the firm. London-based TNS described the WPP cash offer of 230p per share as ‘opportunistic’ and says that it substantially undervalues the company. Instead, TNS intends to press ahead with its plans for the proposed merger with GfK which was announced last week. If this merger goes ahead, it would create the world's second-largest market information group by revenue with a market value of £1.4bn ($2.8bn). Hajo Riesenbeck, Chairman of GfK, commented: ‘We believe that the combination of GfK and TNS is the best fit for both companies and would create better service for clients, better opportunities for employees and better value for shareholders.’ But Sorrell is not taking no for an answer and has urged TNS shareholders to put pressure on their Board to engage with WPP about his firm’s proposed deal. He described the response as ‘cavalier’ and added that he wants TNS to provide WPP with the same information it has given to GfK as part of their ‘nil premium merger’ discussions. Following the announcement, this morning shares in TNS soared 28.75p, or more than 13%, to 243.75p. Rumours suggest that Nielsen is also considering making a counter offer for GfK. Web sites: www.wpp.com , www.tns-global.com , www.gfk.com and www.nielsen.com . TNS:All newsMrWeb infoCurrent job vacancies TNS (USA):All newsCurrent job vacancies GfK Germany:All news GfK NOP:All newsMrWeb info Simple printable version of this article. Email this article to a friend. Register for News emails