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Sorrell Given a Week to Decide on TNS Offer
In the UK, the Panel Executive, an independent body which administers the City Code on takeovers and mergers, has ruled that marketing firm WPP must clarify whether it intends to make a firm offer for TNS by 9 July.
The deadline cannot be extended without specific permission from the Executive.
WPP's two previous offers have been rejected by the TNS Board, which said the bids were not in shareholders' best interests as they undervalued the company.
TNS says it welcomes the Panel Executive's announcement and adds that the decline in WPP's share price further increases this 'substantial undervaluation'.
'WPP has had a substantial period of time to consider whether or not it intends to make a proposal that properly reflects the value of TNS on a standalone basis,' commented Chairman Donald Brydon. 'In the opinion of the Board of TNS, WPP has been provided with more than sufficient information to enable it to value a public company.'
TNS, which has opened its books to WPP, reiterated that it would still prefer a merger with German group GfK.
Web sites: www.thetakeoverpanel.org.uk , www.wpp.com , www.tnsglobal.com , and www.gfk.com .
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