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TNS Board Stresses Standalone Potential
TNS has today issued its shareholders with a new statement urging them to reject WPP's offer for the firm, underlining its strength as a standalone group.
TNS has repeatedly advised its investors not to accept WPP's offer, which values each TNS share at 264.9 pence. In the latest note, the Board reiterates its belief that the bid undervalues TNS and fails to take into account how well the business is performing, its investment in globalising and expanding its online and digital measurement capabilities, and its medium-term adjusted operating margin objective of more than 12.5%.
In the statement, the TNS Board confirms its commitment to medium-term annual double digit underlying earnings growth (although it adds that this does not constitute a forecast of future profits). In addition, it anticipates that this strong growth target should underpin future dividends, which it expects to grow in line with the earnings growth target.
This target is based on TNS' Strategic Plan and Sixth Gear efficiency programme, which the firm says helped drive adjusted earnings per share growth of over 20% in 2007 and for the six months ended 30 June 2008.
Chairman Donald Brydon comments: 'Notwithstanding the extreme volatility of today's financial markets, the TNS Board is very confident in TNS' ability to create substantial shareholder value. We have a sound strategy which is delivering results. We firmly believe now is not the time to sell the company.'
WPP has extended its offer for TNS to 26 September after receiving acceptances from just 11% of TNS shareholders by the previous deadline. Yesterday, it received conditional approval from the European Commission for the takeover.
Web sites: www.tnsglobal.com and www.wpp.com .
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