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WPP has rejected an offer by KKR to take a controlling stake in FGS Global, according to a report in the Financial Times.
The British ad/PR conglomerate sold a 30 percent stake in the strategic communications and advisory shop to the private equity giant last year.
It owns a 55 percent stake in FGS while the PR firm's partners & employees hold the remaining shares.
WPP nixed the KKR offer because it was too low. KKR may make a higher offer for FGS, which WPP’s board would have to consider due to its fiduciary responsibility.
The FT noted that WPP suffers from a conglomerate discount, where its $10B market valuation is worth less than the sum of its parts, which include the newly formed Burson mash-up of Hill & Knowlton and BCW. KKR’s 30 percent stake in FGS is worth about $1.4B.
WPP, KKR and FGS management plan to take the PR firm public during the next two years.
Public Policy Holding Company registered 23.8 percent Q3 growth to $48.8M, with organic growth contributing 4.5 percent and the balance driven by merger & acquisition activity.
Publicis Groupe reported 3.1 percent in Q3 growth to $4B, sparked by a 3.6 percent jump North America, its biggest market.
WPP suffered a 10.2 percent drop in 1H revenues to $6.7B and a 47.8 percent plunge in operating profit to $297M.
Interpublic reported Q2 net revenues dropped 6.6 percent to $2.2B and operating income tumbled 23.4 percent to $243.7M. 
WPP has adopted a gloomier profit and sales forecast due to a deteriorating Q2 financial performance triggered by weak client spending as companies cope with the challenging economic backdrop.
