Tempus shareholders have backed a takeover bid by advertising giant WPP Group but the predator signalled it could yet seek a way out of what has become an expensive deal.
WPP said today its £432 million bid for media-buying company Tempus had received the necessary support after shareholders with 93.9 per cent of stock took up the offer. But WPP warned it was still not a done deal and needed to clear further hurdles.
Advertising conditions have gone from bad to worse after the September 11th attacks pounded an industry already weakened by the economic downturn, prompting a slew of warnings from key players and sending advertising-related stocks spiralling lower.
WPP noted it could yet appeal to takeover authorities, arguing for the right to withdraw from the deal under a "no material adverse change" condition. It may seek to claim that the attacks altered the outlook for Tempus's operations.
Shares in WPP, which have also seen a quarter of their value wiped off since September 11th, fell another 6.2 per cent to 453p today, aggravated by a warning from French rival Havas Advertising that it would not meet its operating margin goal.
WPP extended its offer until October 15th and was expected to extend that further to allow for competition clearance.