Taylor Nelson Sofres PLC
07 May 2008
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
CANADA, JAPAN OR AUSTRALIA
For release at 12 noon 7 May 2008
Taylor Nelson Sofres plc
Continued confidence in the future
Taylor Nelson Sofres plc (TNS), the global market information and insight group,
will hold its Annual General Meeting at 12 noon today. At that meeting, Chairman
Donald Brydon will make the following statement.
"2007 was a year of positive achievement for TNS, both in terms of financial
performance and progress against our strategic objectives. During the year, the
group grew underlying revenue in all its regions and sectors, while at the same
time achieving operating margin improvement. This good operational performance
contributed to earnings per share growth of over 20 per cent and was achieved in
response to the challenging goals set by the Chief Executive, David Lowden. The
board's confidence in the future performance of the group is reflected in its
recommendation of a total dividend of 5.5p per share for 2007, an increase of
almost 20 per cent over the previous year.
"On 29 April, we announced that TNS is in discussions with GfK AG (GfK), which
may lead to a possible merger of equals between the two companies, creating the
world's second largest market information group by revenue. I see this possible
transaction as a very positive development for both companies: for our clients,
our employees and our shareholders. It would deliver accelerated revenue
opportunities and substantial operating efficiencies, as we would bring together
two complementary businesses that know each other well.
"On 3 May, the board received an unsolicited proposal from WPP Group plc,
outlining a possible pre-conditional offer for TNS, which valued each TNS share
at 230 pence. The board considers that this opportunistic proposal substantially
undervalues the company, even on a standalone basis, and it therefore had no
hesitation in rejecting the offer.
"Our discussions with GfK are continuing and further work is being undertaken to
confirm the significant level of merger benefits that could be achieved through
a combination of GfK and TNS. Once this work is completed, we intend to issue a
further announcement relating to the proposed merger, which will make clear the
significant value that this proposed merger would deliver to both GfK and TNS
2008 revenue performance and outlook
"On 11 April, TNS issued an interim management statement, which stated that in
the first quarter the group saw a good performance in its syndicated services
and the custom business performed in line with expectations. Although still
early in the year, overall levels of new business activity for the first quarter
were improved over the previous year. The proportion of orders secured at the
end of the first quarter comfortably supported our expectations and reinforces
the group's confidence in the outlook for the full year."
Press enquiries to Brunswick +44 20 7404 5959
TNS +44 20 8967 1584
Janis Parks, Head of Investor Relations
This announcement does not constitute the announcement of a public takeover
offer or an offering of securities in Germany. Any such offer announcement will
be made at the appropriate time and in the form provided for by German law.
This announcement does not constitute an offer to sell, or a solicitation of an
offer to buy, securities in the United States. Securities may not be offered or
sold in the United States absent registration under the US Securities Act of
1933 or an applicable exemption from registration thereunder. There will be no
public offer of securities in the United States. This announcement should not be
sent, directly or indirectly, in or into, or by use of mails or any means or
instrumentality (including, without limitation, facsimile transmission,
telephone and internet) of interstate or foreign commerce of, or any facilities
of a national securities exchange of, the United States.
Certain statements made in this announcement constitute forward-looking
statements, and can be identified by the use of words such as "may", "would",
"will", "expect" or similar expressions. Such statements are based on current
expectations, speak only as of the date of this announcement and, by their
nature, are subject to a number of risks and uncertainties that could cause
actual results and performance to differ materially from any expected future
results or performance, expressed or implied, by the forward-looking statement.
The information and opinions contained in this announcement are subject to
change without notice and, subject to compliance with applicable law, TNS
assumes no responsibility or obligation to update publicly or review any of the
forward-looking statements contained herein.
This information is provided by RNS
The company news service from the London Stock Exchange