Top Story

e4m_logo.png

Home >> International >> Article

International: Three proceed with bids for Grey Global

10-September-2004
Font Size   16
International: Three proceed with bids for Grey Global

AdAge.com -- Havas, WPP Group and private-equity firm Hellman & Friedman all are formally proceeding on bids for Grey Global Group, according to an individual close to the matter.

$900 a share

WPP came in with an offer at more than $900 a share or at least $1.25 billion; Hellman at $880 a share or $1.22 billion; and Havas at $850 a share or $1.18 billion, the person said.

At those levels, all bids would be considerably below Grey's Sept 8 closing price of $940 a share or $1.31 billion.

Grey's prolonged auction at this point appears to have added little value. The best reported offer, from WPP, isn't much above the price -- $850 a share -- where Grey closed June 24, the day before the first media reports that Grey's chairman-CEO, Ed Meyer, had hired investment bankers to shop the company.

Skeptical investors

WPP was seen from early on as the potential buyer in the strongest position to do the deal, and its apparent top bid confirms that status. British giant WPP, though, still faces skeptical investors who would like it to take a pass on the acquisition of an underperforming mid-tier rival.

If Havas and Hellman bids came in behind WPP, it's conceivable they could raise their offers for New York-based Grey. But whether the auction gets heated is far from certain.

French ad firm Havas still must win over investors worried that it can ill afford to take on Grey given Havas' own high debt and performance issues. Havas could face opposition from Vincent Bollore, a French financier who this summer bought into Havas.

Havas announcement

But Havas is forging ahead. Minutes after the official bidding deadline of 3 pm, New York Time yesterday, Havas announced it was proceeding on a bid. Havas became the first firm to formally disclose it was bidding.

Havas hasn't revealed its offering price. WPP and Hellman weren't commenting yesterday on their plans.

The three firms in recent weeks had emerged as the most likely -- and only -- bidders.

Hellman, a San Francisco buyout firm that once owned Young & Rubicam, is working with private-equity giant Kohlberg Kravis Roberts & Co.

Grey's investment bankers declined to comment yesterday, and Grey executives were not available.

Source: Adage

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

For their latest campaign ‘Peeoge toh Janoge’ (English translation: you’ll buy it if you taste it), Wagh Bakri and DDB Mudra gave Sakshi a new, rustic avatar.

Dabbawalas send some extra love along with dabbas to working professional across Mumbai

The Diamond Producers Association brings to life another rare moment as part of the ‘Real is Rare. Real is a Diamond' Campaign