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