Industry watchers had thought that WPP CEO Sir Martin Sorrell would this week bow to the decision of the panel and give up the fight to get out of bid to buy Tempus. The industry will now have to wait another week.
It is the fourth time that WPP has extended its bid for Tempus. Last week, the full board of the Takeover Panel rejected WPP's argument that it should be allowed to back out of its 555p-a-share bid for Tempus by invoking the material adverse change clause. The clause was invoked on the basis that the situation has changed significantly following the dramatic fall in world markets after the events of September 11.
The panel is due to publish its reasons for the decision today, at which point WPP will have 24 hours to appeal again. However, it is believed unlikely that Sir Martin will want to continue dragging WPP through the distracting process.
On Friday, it emerged that Tempus chairman Chris Ingram could walk out of the company and take his staff with him. Tempus is keen for WPP to accept the deal and end the uncertainty over its future. The threatened walkout by Ingram would be a damaging blow for WPP.
Earlier in the battle, shareholders in Tempus threatened WPP with legal action if it attempts to abandon the £432m bid to buy the company.
It is believed that WPP's case to the panel was weakened by its purchase of a further 3% of Tempus stock after September 11. This raised its stake in Tempus from the 22% it bought earlier this year to 26%.
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