WPP Group is to raise £400 million ($566.58m; €643.37m) in convertible bonds to fund the £432m due on finalisation of its controversial takeover last year of media buyer Tempus Group.
WPP, the second – or third – largest agency group in the world, depending on whose figures you believe [WAMN:08-Mar -02], acquired Tempus last autumn after a bruising poker game between WPP ceo Sir Martin Sorrell (who attempted to withdraw his bid after global recession hit the advertising market) and London’s Takeover Panel who sharply reminded the noble Knight that a deal is a deal is a deal.
The bonds, which attract interest of 2% annually, will convert to WPP stock in five years. Meantime, the funds raised will be used to pay for Tempus and for “general corporate purposes”.
Data sourced from: BrandRepublic (UK); additional content by WARC staff