How will WPP deploy its cash flow? 20 Aug 2004 Martin Sorrell still seems pretty keen on acquiring Grey, especially if he can snap up the US group at a good price. But if not, the issue of share buybacks will come to the fore. Especially since WPP is confident in ever expanding margins. But if not, the issue of share buybacks will come to the fore, especially since WPP is confident of expanding margins further.
WPP to start diligence on Grey 14 Jul 2004 A deal would add yet another network to WPP s constellation of advertising agency brands. But Grey looks expensive. WPP will need to find big cost savings to make a deal stack up.
Ad stocks lose ground 13 Jul 2004 Revenue growth is expanding but not enough to justify the amount investors bid up agency share prices. Investor sentiment is also being hurt by changes in fee structures, a possible economic slowdown in 2005 and option accounting changes
Publicis should avoid buying Grey Global 29 Jun 2004 Controlling shareholder Edward Meyer s decision to sell USbased Grey is unlikely to tempt Maurice Levy, the chairman of Publicis. The US is leading the ad sector s recovery, but Publicis already has substantial exposure there. It should expand in other business areas.
Advertising momentum starts to fizzle 11 Mar 2004 Results have dashed investor hopes that the recovery in advertising might pick up speed. Investors have been riding the ad cycle indiscriminately. They will now have to get choosy.
Havas slips further behind Publicis 14 Nov 2003 Unlike Publicis, it recorded a drop in organic revenues this quarter. Unless it smartens up its act, the smaller of France's two advertising groups will see its already chunky discount to Publicis widen.
WPP climbs further out of the bath 28 Oct 2003 WPP may be climbing out the bath in 2004, but Sir Martin Sorrell is already talking down prospects for 2005. The advertising chief executive may be right, but shareholders shouldn t take his comments too literally.
WPP climbing out of the bath 22 Aug 2003 The advertising giant believes its forecast of a "bathshaped" recession, to end next year, is turning out pretty much as expected. Skilful expectations management has allowed Sir Martin Sorrell's acquisition machine to keep rolling in the meantime and pretty boldly.
Private equity exits key to raising funds 6 Aug 2003 Many big European private equity firms are struggling to raise money. The one exception is Permira, which raised E3bn in just four months. Its success shows that investors are looking for a proven track record of strong exits before opening their wallets again.
Cordiant bonuses under fire 24 Jul 2003 On the contrary. Those bonuses were merited by very hard work but on behalf of the firm's creditors, not its shareholders. Emptyhanded shareholders in the advertising group have blasted the "rewards for failure" that executives will get after its sale.
Chaos surrounds Cordiant 14 Jul 2003 Something very funny is going on when investors buy big stakes in this insolvent company at a premium to WPP's takeitorleave it offer. It looks like blackmail is on the ordre du jour, even though the air is thick with denials. Underhand tactics do not deserve to succeed.
Cordiant parachutes set stage for WPP’s AGM 27 Jun 2003 Whopping payouts to bosses at Cordiant, WPP's new acquisition, are ironic, since WPP's own governance will be under fire at Monday's AGM. The chief executive's deal defies rules that are surely made to be broken. But boardroom power has as much to do with it as his talents.
Cordiant shareholders refuse to submit 23 Jun 2003 Active Value, Cordiant's biggest shareholder, has kept stakebuilding. It could block WPP's token offer for the indebted ad agency's equity. Defiance when cornered is all very well. But WPP holds all the cards, and there is little sign of a rescuer on the horizon.
WPP takes Cordiant 19 Jun 2003 Sir Martin Sorrell's advertising giant has beaten Publicis's scheme to snatch the troubled agency. In doing so, he has demonstrated that a corporate giant can beat a vulture fund at the distressed debt game.
Cordiant in vulture’s clutches 16 Jun 2003 Bondholder Cerberus has vetoed a sale of the distressed media agency and teamed up with Publicis to dismember it. This pact looks bad for shareholders and other creditors. But can counterbidder WPP derail their plan without wrecking fragile Cordiant?
Wannabes eye up Carlton and Granada 9 Jun 2003 The ITV companies, in midmerger, are reported to be the object of bids involving Apax, Haim Saban, David Elstein, and Neil Blackley. The plot is more soap opera than drama. Shareholders will be best served by getting the merger done before looking for offers.
Cordiant says its shares are worthless 30 May 2003 The advertising group decided it had to warn investors that none of the bids its has received justifies even its minimal equity value. But tot up expected asset sales, and Cordiant's problems should be solved. Its debts must be much worse than they look.
Cordiant clings on 1 May 2003 The UK communications group has avoided delisting by a hair's breadth, and lenders will keep it afloat while it reviews options. But its problems are still glaring. Is it an isolated casualty, or a case study in what's happening to media agencies?
WPP shows improving trends 25 Apr 2003 The advertising market looks to be stabilising. WPP is also continuing to squeeze costs. But a snapback rally in advertising spending is not on the cards yet.
No peace dividend for advertising stocks 22 Apr 2003 With the war over, investors have realised that Iraq was only a temporary excuse for adfunded companies. They still do not know when any recovery might arrive. So welcome back volatility.