TNS rejects third WPP approach

by Tristan O'Carroll, Media Week 03-Jul-08, 09:17

LONDON - Market research outfit Taylor Nelson Sofres has rejected a third takeover attempt from WPP aimed at scuppering its planned £1.5bn merger with German rival GfK.

In a statement released to the London Stock Exchange this morning, TNS told WPP to "stop interfering" after snubbing the latest approach, which values TNS at £1.08bn.

Donald Brydon, Chairman of TNS, said: "The board of TNS has been extraordinarily patient with Sir Martin Sorrell. We have now received three proposals from WPP, each of which substantially undervalues the company. WPP has received materially the same information as has been provided to GfK."

Brydon went on: "WPP has got all the information it needs and has had all the time it needs. It is clear that WPP is determined to try and frustrate the GfK-TNS merger for the benefit of WPP's underperforming Kantar division. It is time for Sir Martin Sorrell and WPP to stop interfering and make their intentions clear."

TNS added that it believes that WPP's successive approaches and "considerable press commentary and innuendo" represent an attempt by WPP "purely to frustrate the merger" of GfK and TNS.

A TNS merger with GfK would create the world's biggest market information provider.

Yesterday evening, after the London Stock Exchange closed, The Takeover Panel told WPP that it must submit a final offer for TNS by 9 July, or walk away from the deal.