WPP Group has decided to discontinue its efforts to abandon its $639 million bid for U.K. media buying group Tempus. Contrary to its stated intentions last week, WPP has told the U.K. Takeover Panel-the non-statutory body that administers the City Code of Takeovers and Mergers-that it will not appeal against a ruling last week by the Panel.
The Oct.31 ruling stated that Martin Sorrel's group would not be allowed to invoke any 'material adverse' condition in its original offer for Tempus. WPP made its bid in August but after tried to exit the deal citing the exceptional circumstances following Sept.11.
WPP's offer for Tempus is now unconditional and remains open until further notice.
In a statement, WPP added: "Throughout the bid process, the Board has remained convinced of the long term strategic benefits of combining WPP with Tempus, particularly in connection with the merger of CIA and The Media Edge and the combination of the Tempus strategic marketing businesses with WPP's strategic marketing consultancies.
"WPP's objective is now for both management teams to work closely together to integrate the two businesses and capitalize on the strategic benefits as quickly as possible.