News

Sorrell sees off WPP in takeover race

Sorrell sees off WPP in takeover race
Business
Sir Martin Sorrell has seen off competition from WPP, the firm he ran for three decades, with the first acquisition for his new rival venture.

S4 Capital s purchase of Dutch digital production company MediaMonks is expected to be announced on Tuesday.

Earlier this month , WPP threatened to take away share awards worth about £20m from its former chief executive over his rival bid for MediaMonks.

Sir Martin resigned as WPP chief executive in April.

He l which he has denied.

The findings of an internal investigation into the allegations has not been disclosed because WPP said doing so would breach data protection rules.

Soon after leaving Sir Martin set up his new advertising venture, which he has pledged to build into a "multinational communication services business".

A source close to Sir Martin said S4 Capital s takeover of MediaMonks would involve a mix of cash and shares. It will be worth about €300m (£266m).

Earlier this month, a source close to Sir Martin described relations between WPP and its former boss as "obviously not very good".

The source said WPP s threats to take away his share awards would not deter Sir Martin: "This guy is worth £400m to £500m. He is not going to allow £20m to stand in the way what he is trying to do."

Sir Martin s decision to start a new venture has echoes of his reverse takeover of Wire and Plastics Products in 1985.

The maker of wire shopping baskets was turned into WPP, and over 30 years became the world s biggest advertising company with revenues of over £15bn.
Read more on bbc.com
News Topics :
Similar Articles :
Business
A year after Sir Martin Sorrell resigned as head of the advertising giant WPP he will still receive shares worth £2.13m from the company. The pay out is from WPP s...
Business
Sir Martin, 73, the driving force behind 33 years of dealmaking at WPP, stepped down in April after the board investigated claims of misconduct. Confirmation of the Derriston deal, first...
Business
Liberal Democrat leader Sir Vince Cable has called on WPP to disclose details of alleged misconduct allegations against Sir Martin Sorrell. WPP said at the weekend that its former chief...
Business
Liberal Democrat leader Sir Vince Cable says new claims about Sir Martin Sorrell mean WPP must come clean over his exit from the advertising giant. It follows reports a WPP...
Business
Many of WPP s 200, 000 staff will feel liberated after the departure of founder Sir Martin Sorrell, according to one of his most senior lieutenants. Stephen Allan, boss of WPP owned...