The Interpublic Group of Companies confirmed last week that it was looking to sell NFO WorldGroup, the market research unit it bought three years ago for more than $500m (拢312m). It is likely to be worth less than half that in today's deflated market.
As well as WPP, which has a large market research business including Millward Brown, and United, which owns NOP, UK market research firm Taylor Nelson is also reported to be interested in acquiring NFO.
Interpublic recently retained investment bank Goldman Sachs with a brief to "explore strategic alternatives regarding its NFO WorldGroup unit".
In a statement issued last week, Interpublic said that it had reached an agreement with its lenders to extend the due date for amending credit agreements to February 10.
The acquisition of NFO came at the end of the dotcom boom when the industry and profits were riding high. Since the end of the boom, many of those acquisitions are valued well below what Interpublic paid for them, and NFO WorldGroup is not likely to be an exception.
The sale of NFO comes at the end of a disastrous 2002 for Interpublic and things are not looking any better following news at the weekend that an informal investigation by the US financial watchdog the Securities & Exchange Commission is now to turn formal.
The investigation is related to $181.3m in improperly booked revenues at McCann-Erickson WorldGroup, which cost Sal LaGreca, chief financial officer of the agency, his job.
Interpublic's chief executive John Dooner has said he hopes the company can put "what I call the 'stupids' behind us".
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