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TNS Turns Down WPP's Third Offer
TNS has fended off a third approach from communications giant WPP, stating that the bid still substantially undervalues the company.
 In the latest offer, WPP Chairman Sir Martin Sorrell raised the stakes to 260p per share, which values the firm at £1.1bn ($2.14bn). Earlier bids rated it at 230p and 241.8p respectively.
Sorrell is hoping to break up merger talks between TNS and German agency GfK, so that he can combine TNS with his own research business, Kantar.
However, TNS is still determined to continue with the GfK merger, and Chairman Donald Brydon says that the only reason Sorrell is making these 'weak bids' is that he fears the firms' combined forces would pose a threat to Kantar.
In a statement released to the London Stock Exchange this morning, the market research firm told Sorrell to 'stop interfering'. Brydon adds: '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. It is time for Sir Martin and WPP to make their intentions clear.'
Sorrell replied that he would talk through his intentions directly with TNS shareholders: 'We have been willing to talk since 27 March. Now we will go straight to their shareholders and ask do they believe the TNS management or do they want our offer?'
If the TNS-GfK merger goes ahead, TNS shareholders - who will vote on the plan at a meeting on 18 July - would hold around 50% of the shares of the newly-enlarged group.
Sorrell has urged TNS shareholders to vote against the deal, as he believes a merger between TNS and Kantar would provide them with a more favourable option.
Last night, The Panel Executive told WPP that it must submit a final offer for TNS by 9 July, or walk away from the deal.
TNS shares were up 3.4% to 232.75p at midday.
Web sites: www.wpp.com , www.tnsglobal.com , and www.gfk.com .
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