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TNS Looks at Options; GfK Remains Positive
GfK's discussions regarding a possible offer for TNS are 'progressing positively' the company said today, as it announced a strong order book from the first half of 2008 and a two-week delay in financial reporting. However, TNS has reportedly been talking to Sir Martin Sorrell and scouting for other possible buyers.
GfK is said to need £400-600m from a joint venture partner if it wishes to trump WPP's existing bid for TNS. CEO Klaus Wuebbenhorst told Reuters on Friday that his firm is in talks with several possible financial partners about a bid.
According to the Telegraph (www.telegraph.co.uk ) last Thursday saw a first meeting between TNS CEO David Lowden and Sir Martin, since the latter's hostile £1.1bn bid. The paper reports that the two discussed potential savings from a tie-up, which WPP has to date estimated at no more than £52m, versus GfK's merger-of-equals estimate of Euros 97m (£76m). The meeting was said to be constructive. However the Sunday Telegraph reported that TNS has also asked its advisors Deutsche Bank to assess the potential for bids from other possibles including Nielsen, and US private equity company / Nielsen shareholder Hellman and Friedman.
GfK blames its reporting delay on extra accounting work resulting from the now-cancelled merger of equals, including the requirements of the UK Listing Authority. Results for the six months to 30 June will now be published on 28 August. The preliminary information it released today suggests the results, when they do arrive, will be good. The Group's order book at the end of June 2008 is 'clearly stronger than at the same time last year' with orders already invoiced and booked for the remainder of the year accounting for 76.4% of the total projected 2008 Financial Year sales - 2.3% up on the previous year.
Web sites: www.gfk.com , www.tnsglobal.com , www.wpp.com .
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