WPP says 'too early to speculate' about sale of Kantar

Lindsay Bennett
By Lindsay Bennett | 1 May 2018
 

WPP has batted away the speculation it is breaking up its portfolio, saying the sale of Kantar is simply speculation.

Multiple reports have alleged Kantar CEO Eric Salama is in talks with potential backers for a possible US$4.8 billion buyout of the market research agency.

Salama has also been in discussions with “banks and private equity firms” since Sir Martin Sorrell stepped down as WPP’s CEO last month, having already been approached by CVC Capital partners, the reports said.

The private equity firm’s interest in recent weeks followed the termination of talks between WPP and market research group Nielsen about a Kantar-Nielsen merger.

"It is too early to speculate about specific asset sales," a WPP spokesperson tells AdNews.

"In the meantime, it has been made clear that Roberto Quarta, Mark Read and Andrew Scott don't believe breaking up the group makes sense."

The WPP spokesperson confirms that holding group's interim leadership are "reviewing the group's strategy" and are focusing on "the optimum shape of the group to create growth and shareholder value".

Read reiterated this stance in April stating that selling parts of the business "didn't make sense".

Kantar, which last reported a profit of £350 million, is one of the world’s leading data, research and consultancy groups, working with more than half of the Fortune 500 companies to give insight into areas such as shopping habits and media consumption.

At the beginning of this year, it bolstered its offering by merging four advisory firms under its umbrella and launching its own consulting outfit to challenge the likes of PwC and Accenture.

Salama is one of the frontrunners to succeed Sorrell alongside Read, who recently stated he would like the CEO job.

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