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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 grew 27.5 percent to $50.1M during Q1, powered by the accelerating contribution from recent acquisitions and a 5.1 percent hike in organic revenues across its three operating segments.
Institutional Shareholder Services advises investors to vote "no" on a compensation package for WPP chief Cindy Rose at the May 8 annual meeting.
FTI Consulting chalked up a 9.5 percent rise in Q1 revenues to $983.3M, powered by gains in its PR, corporate finance and technology segments.
Stagwell reports 4 percent growth in Q1 net revenues to $585M and a record $141M in net new business wins.
WPP reported a 6.7 percent drop to $3.1B in Q1 like-like revenues less pass-through costs. CEO Cindy Rose says 'it will take time to outpace historical losses."
