Oct 9, 2008 6:01 AM, PROMO Xtra, By Brian Quinton

Sir Martin Sorrell says WPP’s acquisition of TNS will add valuable clients and brands to its marketing research business.

Ad holding company WPP Group said Wednesday it has succeeded in its bid to acquire publicly-held marketing research firm Taylor Nelson Sofres for $1.93 billion in stock and cash.

The London-based WPP made the hostile takeover bid early in 2008 and extended the deadline for the offer four times, most recently in July, in the face of opposition from TNS directors.

The TNS board had previously urged its shareholders to turn down the WPP tender as too low. But in an abrupt reversal, directors recommended on Monday that shareholders agree to the takeover bid. That day, WPP revealed that 61% of TNS’ shareholders have agreed to the tender, to involve both stock and cash.

In a Monday statement urging acceptance, TNS said its board “now recommends that shareholders accept the WPP offer” to avoid becoming a minority interest in an unlisted company.

If more than 75% of shareholders had accepted the offer, WPP chief executive officer Sir Martin Sorrell would have been able to delist TNS from the stock market.

“We are delighted to be a step closer to welcoming such a fine company with strong people, clients and brands that will enhance our client offering,” Sorrell said in a statement yesterday.

The offer for TNS has now been extended until Oct. 22.

WPP already owns a marketing research firm Kantar. A successful deal between TNS and WPP would presumably combine the two agencies to create the second biggest market research company in the world, trailing privately-held Nielsen.

Some analysts have suggested that beefed-up research revenues could help advertising holding companies such as WPP weather a downturn in overall ad spending, as marketers look to spend ad dollars in the most efficient, measurable ways.

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