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Sorrell Predicts More MR Takeovers
WPP's CEO Martin Sorrell has predicted further consolidation in the MR industry, and indicated that WPP still has an eye on Synovate as well as on VNU's companies. He stated that WPP is likely to make medium-sized acquisitions in future, and that 'there are plenty of things to play for'.
Sorrell made the comments, reported by news agency Bloomberg, at an ad inudstry conference in Frankfurt yesterday. He said that WPP, which owns the Kantar group of MR companies, is 'looking at what's happening' to VNU, the owner of ACNielsen and Nielsen Media Research.
VNU is currently considering a bid from a private equity consortium (www.mrweb.com/drno/news5048.htm ), and analysts predict that, if the company is bought, it is likely to be broken up.
Frank Maggio, Chair of erinMedia - a rival to Nielsen Media in the US - has already announced that he is considering a takeover bid for Nielsen Media Research if VNU is sold (www.mrweb.com/drno/news5035.htm )
WPP abandoned a bid for Aegis, which owns MR firm Synovate, late last year. However, it reserved the right to make another bid in future if another company did so.
Sorrell said there are 'lots of pieces moving around on the chessboard', and added that GfK, TNS and Ipsos are all 'potential consolidation candidates'.
The CEO also commented that he is concerned about the business climate in Western Europe, which he says remains 'very tough' for his clients. WPP reported a 23% rise in revenues for the 3rd quarter of 2005, while its UK revenues rose by just 9.7%.
The group is online at www.wpp.com
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