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WPP Makes Hostile Bid For TNS; GfK Considers Cash Bid In Response

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As expected, WPP Group is making a hostile bid for audience measurement firm Taylor Nelson Sofres, which has rejected the ad holding company’s three previous offers, Reuters reports. That in turn, has led UK-based TNS’ preferred suitor, Germany audience measurement provider GfK to rethink the combination of equals that was originally being worked out in May. That deal has been valued at €100 million ($154 million) and would create the globe’s second-largest audience measurement firm behind Nielsen. Now, GfK says it is considering a cash offer for its UK rival.

SEE ALSO: TNS Rejects Latest WPP Offer, Deadline Stopclock Begins To Tick

As it stands now, WPP is now bidding £1.8 billion ($2.13 billion) for TNS, which met the deadline handed down by the London Stock Exchange takeover panel. Analysts are uncertain whether a cash offer from GfK would ignite a bidding war between it and WPP.

The Guardian: GfK is seeking additional funding to be able to go ahead with a cash offer for TNS. WPP’s goal is to merge TNS with its own audience reseacher, Kantar, would create savings of more than £50 million ($98.6 million) annually.

Jul 9, 2008 7:42 AM ET

Posted In: Advertising, Money, M&A & Venture Capital, Mergers & Acquisitions, Companies, WPP, Countries, Europe, Germany, gfk, tns media intelligence

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