The $4.4bn agreed takeover by WPP Group of Young & Rubicam is expected to be announced formally at the opening this morning of London’s Stock Exchange. However, the timing of the announcement is dependent on completion of the final formalities and it is possible that the declaration may be held over until Monday.
The announcement will confirm that economies resulting from the reduction of common overheads will lead to an enhancement of WPP’s earnings per share, even though Y&R will continue to trade as a separate company. The stock markets appear to share this view, with WPP’s share price rising in New York by $11.16 to $63 and in London by 23p to £8.45p.
Meantime, French group Publicis, a former suitor for the hand of Y&R, issued a statement denying that it had any thoughts of an eleventh hour intervention.
News source: Financial Times