STW Communications enters trading halt with WPP poised to finally complete takeover
WPP could take control of Australia’s largest listed advertising and communications company, STW Group, as early as next week, Mumbrella understands.
STW (ASX:SGN) has this morning placed its shares into a trading halt on the Australian Securities Exchange, ahead of an announcement.
It is understood WPP, which currently holds 23.65 per cent of STW, is set to take 60 per cent of the company. It is believed the companies have been going through due diligence for the past two months.
It is understood no cash will change hands in the move, and operations of WPP and STW will come under the same banner.
Never saw this coming, oh no, totally blindsided, lol.
Lifejackets everybody.
Welcome news, but on the other hand the prospect of job losses would be high – and that’s very unfortunate.
One can hope any losses would come from the area of the business that has consistently underperformed – the leadership group & board.
Gonna get ugly
Well i guess i should update the resume…
The Indy agencies will benefit from consolidation. Expect a pitch frenzy in 2016
Is tongue an agency or a hobby?
If its not bad enough already, can you imagine how much more of managements time will be taken up with financial reporting at O&M,JWT,Y&R/Patts. I feel sorry for them.
This should have happened years ago – or at least when the price was at 55cents.
Once the announcement is made wait for the STW announcement of “business as usual” with minimal changes and then the wave of job cuts. Run…Forest…Run!
Strengthens GroupM’s position significantly….Ikon and Bohemia will help the losses at Mediacom
Job cuts, mergers and divestments here we come.
Don’t worry – Noel will have jobs for anyone cast adrift by this happening.
STW is well undervalued by the market and Sorrel comes in just before the next set of results that will no doubt show the start of a turnaround. This is bad for investors and staff alike.
Sun will still rise. Won’t it?
All your sub-par agencies are belong to us.