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Offer Won't be Increased, Says WPP
WPP says its current offer for TNS is final and will not be increased unless a rival bidder emerges. The ad group has also sent TNS shareholders information clarifying its intention to create a new UK-listed but offshore-based parent company.
The new company was first mentioned on Monday, as WPP announced it would be moving its domicile for tax purposes out of the UK.
The offer, of 173p in cash plus 0.1889 of a new WPP share for every TNS share held, is open for acceptances until 3pm tomorrow. As of Monday, WPP had acceptances from 43% of shareholders for the bid, which at the current WPP share price values TNS at 259p a share, or about £1.14bn. Analysts expressing an opinion generally believe the acceptances already announced mean the deal has the momentum to go through.
WPP says the amount of the offer represents a premium of c.52% over the Closing Price of 171p on 28 April, before the announcement of the nil-premium merger with GfK; and 21% over the 215p to which shares had risen by 2 May, prior to the first announcement of a WPP bid. It repeats its belief that the Offer provides 'a substantial premium for TNS Share Owners with both cash certainty and potential equity upside'.
Web sites: www.wpp.com and www.tnsglobal.com .
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