The U-turn by the board follows a WPP statement on Friday, underlining that it did not intend to increase its bid, which the TNS board has maintained undervalues the company since it was first aired on 9 July.
WPP has also reduced the acceptance condition to 75 per cent of the TNS ordinary shares and has stated its intention to de-list TNS when it has declared the offer unconditional. This move led the TNS board, advised by Deutsche Bank, JPMorgan Cazenove and Moelis & Company, to note that "there is a risk that TNS shareholders who do not accept the WPP offer could, as a result, own a minority interest in an unlisted company".
The number of shareholders willing to accept the WPP deal had already been steadily climbing, from 34% to 43%, before reaching 60.86% last week. The new recommendation is expected to bring the deal to a swift conclusion by WPP's extended new deadline of 8 October.
A successful merger with TNS stands to make Martin Sorrell's WPP the world's second-largest market research company by revenue after Nielsen.
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