The Takeover Panel is now examining WPP's new evidence and will likely make a decision before the end of the week.
As WPP submitted its new information yesterday, WPP CEO Sir Martin Sorrell further extended the deadline for acceptances by another week. The new deadline gives shareholders until October 29 to accept the offer.
Quite what WPP's new information is, it will not reveal. Whatever the nature of the information, few believe it is enough for the Takeover Panel to support its bid to invoke the material adverse change condition, which would allow WPP to get out of its bid for Tempus.
Analysts believe that the new information relates to a Tempus profit warning that has been concealed by Tempus. WPP has already asked to see Tempus's books and has been turned down by Tempus CEO Chris Ingram.
If it is a profit warning, it will have to be a significant one telling of a fall of at least 20% for WPP's attempt to get out of the deal to be successful. Sources believe that profits at Tempus are likely to be down, but only by as much as 10%.
Even if Tempus does issue a profit warning, the company can argue that it is an industry-wide issue, not company specific. There is also the fact that WPP bought 3% of shares in Tempus after the September 11 terrorist attacks, around which WPP's argument hinges.
Tempus has already told the Takeover Panel it sees no reason for WPP to be allowed out of the deal, having seen WPP's submission to the City regulator last week. Tempus shareholders have also threatened legal action if the material adverse change clause is invoked.
WPP's third-quarter results are due this week. Its shares rose 8.5% in yesterday's trading to close at 573p and continued to rise this morning, up 0.6% to 576.5p.
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