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TNS Bid: WPP Closes Gap, Extends Deadline Again
WPP has again extended its deadline for TNS shareholders to decide on its £1.2bn bid - to this Friday, October 3rd - but has now received acceptances from 33.8% of them - up from just 11% two weeks previously.
TNS continues to recommend rejection saying the offer, equivalent to 262.5p per share based on WPP's closing price on Friday, undervalues the company given its current business performance, market position and potential. TNS' own shares closed at 249 pence on Friday.
TNS Chairman Donald Brydon said in a statement last week that his firm was 'very confident in TNS' ability to create substantial shareholder value' and concluded 'We firmly believe now is not the time to sell the company.' A day earlier, WPP got a basic thumbs-up for the deal from the EU competition investigation, with the proviso that it sell European TAM and Irish MR businesses.
WPP said the improvement in numbers willing to sell was 'promising' and reiterated that the offer, in its opinion, 'provides a substantial premium for TNS share owners with both cash certainty and potential equity upside'. Unchanged since August 4th when WPP wrote to TNS shareholders, the offer remains at 173p in cash and 0.1889 new WPP shares per TNS share.
Web sites: www.wpp.com and www.tnsglobal.com .
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