British advertising group WPP wins battle for Grey Global

0 Comments | AFP, September, 2004

LONDON (AFP) — British advertising group WPP said over the weekend it would acquire rival Grey Global of the United States in a cash and stock deal worth 1.520 billion euros (1.246 billion dollars).

WPP won the bidding battle for Grey over Havas of France, which declined to boost its initial offer, and US private equity firm Hellman and Friedman.

WPP announced Sunday that it had been chosen by Grey Global, the seventh largest publicity group. It said 50 percent of the transaction would be in cash and the rest in shares, adding that the deal would create synergies worth 20 million dollars.

One of Grey's long-time leading clients is the US cosmetics and consumer products giant Procter and Gamble, responsible for about 10 percent of Grey Global's annual sales....