3rd Jul 2018 14:15
LONDON (Alliance News) - WPP is set to go up against its former chief executive, Martin Sorrell, in a takeover tussle for control of Netherlands-based MediaMonks.
Sorrell's new firm, S4 Capital, and WPP have emerged as two of the interested parties.
The bidding war could rise as high as EUR300 million, or GBP264 million, for MediaMonks, which specialises in digital advertising and production.
Advertising guru Sorrell left WPP, the FTSE100 company he founded more than 30 years ago, in April following allegations of personal misconduct, which he denies.
WPP carried out an inquiry into allegations that he misused company funds, but the details of the investigation were never disclosed.
It has been alleged that the probe looked into whether he used company cash to pay for a sex worker, claims that Sorrell has "strenuously" denied.
The WPP board has come under fire for its handling of his departure, which included a bumper GBP20 million payout. In addition, the tycoon is not hampered by a non-compete clause.
It means that Sorrell is able to go head to head with WPP for contracts, although he has played down direct competition with his former firm.
Sorrell has pumped GBP40 million into S4 Capital, with support pledged from investors for up to GBP150 million more.
By Ravender Sembhy, Press Association City Editor
source: Press Association
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