TNS accepts WPP takeover bid

Global - Market research group Taylor Nelson Sofres has reversed months of opposition to a takeover from WPP, advising its shareholder to accept the £1.2 billion offer.

WPP launched a hostile bid for TNS in July and announced on Friday that it had secured acceptances from 61% of TNS' shareholder base. WPP needs 75% shareholder approval to move ahead with the acquisition.

A successful deal would create the world's second largest market research group behind The Nielsen Company.

In a statement, WPP said the offer provides a "substantial premium" for TNS owners with both cash certainty and potential equity upside.

But TNS did not agree. In a statement the company said the WPP offer undervalues TNS, but it has decided to accept the offer.

"There is a risk that TNS Shareholders who do not accept the WPP Offer could as a result own a minority interest in an unlisted company," the statement said.

"Therefore, the Board, which has been so advised by Deutsche Bank, JPMorgan Cazenove and Moelis & Company, now recommends that shareholders accept the WPP Offer, as the directors intend to do in respect of their own beneficial holdings."

TNS now has until 3.00 p.m. (London time) today (8 October) to accept WPP's final offer of £1.2 billion.