TNS cools WPP's acquisition fever

Global - Taylor Nelson Sofres (TNS) has rejected an unsolicited takeover bid from the WPP group, saying its US$1.9 billion price tag "substantially undervalues" the research company.

Last Saturday 3 May TNS said WPP put a $US1.9 billion proposal on the table for full control of the consumer trends and media research company.

Donald Brydon, chairman of TNS, said the board had no hesitation in rejecting WPP's "opportunistic proposal" as it substantially undervalued the company.

"The board of TNS ... has unanimously rejected the proposal which it believes is not in shareholders' best interests," he said.

TNS is instead hoping to pursue a venture with the world's fifth largest market research GfK. Should it go ahead, the combined GfK and TNS would be the world's second largest market research company by revenue.

Negotiations between GfK and TNS are continuing.