WPP gears up for STW takeover – reports
The shares are suspended until December 15 meaning WPP could take control of STW as early as next week.
STW, Australia’s largest listed advertising and communications company, has suspended its shares on the ASX preceding “the release of an announcement” tipped to be a takeover by WPP.
The shares are suspended until December 15 meaning WPP could take control of STW as early as next week, according to reports in Australian media.
STW and WPP both have a significant presence in New Zealand. Together they own Ogilvy & Mather and JWT, while STW owns Assignment and WPP owns Y&R and GroupM agencies.
It is reported that WPP currently holds 23.65% of STW and will own 60% following an impending takeover – rumours of which have been circulating for some time.
WPP chief executive Sir Martin Sorrell did not deny the takeover but told Mumbrella "if there was any real news, we'd let you know."
This year STW began a strategic review resulting in it divesting some agencies. Its half-year net profit after tax was down 22.5%.
While STW is the largest communications group in Australia, London Stock Exchange-listed WPP is the largest in the world.
Chelsea Armitage
Fri, 11 Dec 2015
Fri, 11 Dec 2015
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WPP gears up for STW takeover – reports
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