WPP ready to bid for Grey Global

SIR MARTIN Sorrell, chief executive of marketing services giant

WPP has ruled out a rights issue to help fund the deal and the bulk of the offer is likely to be made up of new shares.

The deadline for bids for Grey is understood to be this Wednesday. French advertising group Havas is also expected to put in an offer, in partnership with the venture capital firm Quadrangle.

The other bidder is likely to be American venture capital group Hellman & Friedman.

Ed Meyer, Grey's chairman and chief executive, will decide the future of the company since he controls 70% of the voting stock, despite owning just 20% of the shares.

Grey's market value is just over £600m, while WPP's is nearly £6bn.

The City's reaction to a bid from WPP is likely to be lukewarm since it fears Grey's margins could prove a drag on WPP's earnings, but Sorrell is understood to be keen to get hold of Grey's blue-chip client list.