WPP considering pulling out of Tempus takeover bid

<p>WPP is likely considering halting its takeover bid of the Tempus </p><p>Group because of the dire condition of the world economy and its finance </p><p>markets, which have been shaken by the deadly terrorist strikes on New </p><p>York and Washington more than two weeks ago. </p><p><BR><BR> </p><p>The atrocities have severely impacted the advertising industry in Asia </p><p>as well as the rest of the world (see analysis, p14), however, it is </p><p>WPP's bid for Tempus which agencies have focused on. </p><p><BR><BR> </p><p>WPP's move was aimed at thwarting Havas' bid for Tempus. But last week, </p><p>Havas pulled out of the deal fearing a global recession was now </p><p>imminent. </p><p><BR><BR> </p><p>Sources said that WPP chairman Martin Sorrell wants out of the deal </p><p>because of poor economic trend numbers, unsteady financial markets, and </p><p>Tempus' announcement this week that its first half profit fell three per </p><p>cent year-on-year. </p><p><BR><BR> </p><p>Sorrell had earlier ruled out a mega merger this year (media, June 8) </p><p>but it appears that Havas' initial offer for Tempus may have forced his </p><p>hand. Stock analysts said the only way out was if there was a material </p><p>change in the situation surrounding the offer, but they pointed out that </p><p>WPP purchased another batch of Tempus shares just last week. </p><p><BR><BR> </p><p>But given the slump in the advertising market, it's believed that </p><p>Sorrell could use Tempus' interim results as an excuse to wriggle out of </p><p>the bid. </p><p><BR><BR> </p>