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Sorrell Ponders Response
Sir Martin Sorrell is said still to be considering this week's GfK-TNS merger announcement and whether or not to come back with a fresh offer for TNS. Quoted in the UK's Guardian newspaper, the acquisitive WPP boss described the GfK-TNS proposal as 'a defensive merger'.
Sorrell told the paper (www.guardian.co.uk ) he still strongly believes WPP is a better fit for TNS than Germany's GfK; that WPP's strength in fast-growing markets including China and India would be good for TNS, while Nielsen would be a better fit for GfK; that the TNS-GfK announcement's 15% margin target strikes him as 'adventurous to say the least'; and that 'there has been some fudging going on' over some topics such as job cuts.
Examining TNS' motives, Sorrell said he thought that 'underlying this is a basic concern [TNS] have about their business. This is a defensive merger, this is not an offensive merger.' He also claimed the document's leadership plans would make TNS management 'the meat in the sandwich' between a GfK chairman and a GfK financial director.
Terms for the 'merger of equals' were announced on Tuesday, more than a month after the firms originally announced they were in discussions. Sorrell's second bid for TNS was rejected three weeks ago, a few days after a letter to employees from GfK CEO Prof. Klaus Wübbenhorst branded the WPP boss's job cuts comments 'morally reprehensible'.
Web sites are at www.tnsglobal.com , www.gfk.com and www.wpp.com .
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