WPP, Y&R NEGOTIATING AGAIN
By Adnews Staff
London-based WPP Plc may walk away from its renewed negotiations to buy New York-based Young & Rubicam because of a clause in Y&R's executive compensation package, an article in the National Post has reported. WPP's CEO Martin Sorrell, is reported to have resumed negotiations with Tom Bell, Y&R's president and CEO, in a US$4-billion deal that would create the world's largest agency network. The two companies almost reached a deal in February but talks broke down when a $60 million compensation clause was discovered that allows Y&R executives to leave the company and receive a package if they didn't like the working condition following the merger. Sorrel is thought to have made an all-share offer that would give Y&R 30% of the new group but Y&R's board is believed to be holding out for a figure closer to 40%, the report says.