Y&R share price fall sparks speculation of WPP takeover bid

Speculation is mounting that Young & Rubicam is to be bought by WPP as the agency’s share price continues to plummet.

Speculation is mounting that Young & Rubicam is to be bought by WPP

as the agency’s share price continues to plummet.



Y&R’s share price reached a peak of dollars 72 in late December, but has

been falling ever since and this Wednesday the shares were trading at

dollars 41.



WPP shares have been rising, standing at pounds 10.22 as Campaign went

to press.



Rumours about a WPP takeover have been around for some time. WPP’s chief

executive, Martin Sorrell, has told Campaign that Y&R would be a good

strategic fit with his portfolio of advertising assets. However, he

refused to comment further.



Andrew Gordon-Brown, an analyst at Warburg Dillon Read, said: ’ There

has been a consolidation among agencies as they compete to offer a full

global service.’



WPP and Y&R count Ford as their largest client. Any deal would have to

involve talks with the motor giant. There are no indications that such

talks have taken place.