WPP battens down the hatches over pandemic amid rumours it could become a takeover target
WPP is slashing pay and its dividend as rumours swirl that it could become a takeover target.
The advertising group yesterday warned that the coronavirus crisis was hitting revenues as clients delayed spending decisions and put back marketing campaigns.
In an effort to save up to £800million, WPP is axing the dividend, cutting executive pay, freezing hiring and stopping all non-urgent spending.
WPP yesterday warned that the coronavirus crisis was hitting revenues as clients delayed spending decisions and put back marketing campaigns
Mark Read, WPP’s chief executive, said: ‘I am very proud of the response from our people.
‘At the same time, we are supporting many governments and international health organisations on communications programmes to limit the impact of Covid-19 on our communities.’
Shares rose 6.9 per cent, or 35.6p, to 551.4p, but they are nearly 50 per cent down so far this year, wiping more than £6billion off its value.
That could make WPP a sitting duck for takeover bids. Such a deal would provide a timely boost to former boss Sir Martin Sorrell, 75, who is being divorced by wife Lady Cristiana Falcone Sorrell.
He ran WPP for three decades – and still has a 1.43 per cent stake in the firm – before he was ousted in 2018 over claims he used company money to pay for a prostitute, which he denies.
A source close to WPP, founded by Sorrell in the 1980s, denied the business had received any approaches from interested bidders.