TNS Surrenders To WPP Group, Tells Shareholders To Accept The $2 Billion Deal
By David Kaplan - Mon 06 Oct 2008 09:53 AM PST
After months of repeatedly rebuffing WPP Group’s $2 billion (£1.14 billion) takeover bid, media measurement firm TNS is now telling its shareholders to approve the deal, Reuters reports. WPP made the offer back in July, two months after TNS and its German rival, media audience monitor GfK, announced plans to merge, creating the world’s second largest audience measurement firm after Nielsen. But when WPP muscled in with its offer for TNS, GfK began to get cold feet. GfK began trying to come up with a cash offer for TNS, but those efforts quickly failed, leaving nothing but TNS’ continued rejections of WPP and the ad giant’s unflagging desire to buy it.
On Friday, WPP said it had gotten the support of 61 percent of TNS shareholders. Although the deal is nearly done, TNS executives still say that WPP’s bid undervalues the company. But executives decided to surrender, as the alternative would have left TNS investors holding on to a minority interest in an unlisted company.
Posted in: Advertising, Marketing, Countries, UK & Europe, VC+M&A, Mergers & Acquisitions
