WPP Group, waiting on the Takeover Panel’s decision as to whether it can withdraw its £432 million bid for Tempus Group, has extended the offer until October 22.
WPP is attempting to wriggle out of the acquisition by using the ‘material adverse change’ clause, which allows a bidder to pull out should its target suffer a significant downturn in fortunes. It is arguing that the fall in media stocks since September 11 constitutes just such a change, though it is thought unlikely the Takeover Panel will agree.
It also emerged that Tempus shareholders are threatening WPP with legal action should it try to drop the bid.
News source: CampaignLive (UK)