WPP, Grey Deal Delayed
WPP has pushed back its purchase of Grey Global Group following a request last week from the European Commission for more information about the $1.5 billion deal.
It’s unclear what kind of information the Commission—the European Union’s version of the Securities & Exchange Commission—has requested. The deal was originally expected to close in January (Sept. 14 Xtra); London-based WPP submitted its initial data to the European Commission on Oct. 20. U.S. regulators approved the deal earlier this month. WPP has indicated that it now expects the deal to close in early 2005.
WPP has said it will hire a chairman-CEO of Grey to oversee its divisions about six months after the purchase closes; until then, Grey’s current president-CEO, Ed Meyer, will act as chairman-CEO. Meyer will stay on for at least two years as part of the purchase agreement and will be offered a seat on WPP’s board after Grey’s new chairman-CEO is hired.
