TNS Rejects WPP Offer

LONDON, August 28: The
management of Taylor Nelson Sofres (TNS) is urging the company’s shareholders
to reject a hostile takeover bid from WPP Group, even as rival GfK withdrew its
offer to merge with the research giant.

In June, TNS and GfK
announced plans to merge in order to create the world’s second-largest global
research group. Six weeks later, WPP Group made a hostile takeover offer for
TNS. WPP maintained that a Kantar/TNS combination would create the
second-largest information, insight and consultancy group globally. GfK said at
the time that it would continue pursuing a TNS alliance, but has since been
unable to come up with the funds to counter the WPP offer. TNS, meanwhile,
believes the WPP cash-and-shares offer, worth about 269 pence per share, is too
low and is said to be holding out for a 325 pence per share deal.

"Tactically [WPP] have achieved their number one objective, which is to make sure the merger
doesn't go through," David Lowden, TNS’s chief executive, told the Financial
Times. "Their number two
objective is to acquire TNS at as low a price as possible. We've rebutted them
three times, we will see where things go now."

—By Mansha Daswani