Sorrell Earmarks £200m for Acquisitions

WPP Chief Exec Sir Martin Sorrell has suggested that the group may double the amount available for acquisitions this year, as it looks to invest in new media and emerging markets and take advantage of better conditions in the ad industry.

In an interview with Bloomberg Television (reported on www.bloomberg.com ) at the World Economic Forum in Jakarta, Sorrell said WPP would allocate more than £200m for acquisitions this year, against a recent typical annual budget of £100m.

WPP has this month increased its full year sales forecast, with growth in Asia, Latin America and Africa off-setting sluggish US conditions, and Sorrell said he is 'bullish' about growth in 2011-12 with the Olympics, US presidential election and European football boosting spend.

WPP has said it expects to post a 6%+ revenue increase and EBITDA of $2.5bn this year, and has made a number of smaller acquisitions to date, in line with a stated aim not to look for large buys. Both this and the overall war chest figure of £200m seem to support reports that WPP will not have its hat in the ring for Synovate, whose value is perhaps nearer £500m.

Group home page: www.wpp.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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