Australia’s largest agency holding company STW Communications, which owns the likes of full-service agency lkon, JWT and Oglivy, has given another chunk of its shares to WPP.
A notice on the ASX shows that Cavendish Square Holdings, which operates as a subsidiary of WPP, and is based in the Netherlands, has bought more shares, bringing WPP's stake in STW to 23.55%.
Upping of WPP's stake only flames rumours of a takeover, particularly given STW's tough time.
Speaking to AdNews in February, STW CEO Michael Connaghan called the group's 2014 full year financial results “disappointing”, as it posted a 7.8% drop in underlying net profit after tax (NPAT) to $45.6million and announced it was undertaking a strategic review.
At the time, Connaghan said: “We wanted to come here today and make no bones about the fact that we were very disappointed in our performance. The earnings slide of 7.8% is just not up to our standard.”
In August this year STW then reported a 22.5% drop in net profit after tax (NPAT) of $15.1 million from 19.5% in the prior corresponding period as a result of “significant client losses” last year, in its half year results.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at email@example.com