According to The Sunday Times, the French group Havas, controlled by the Bolloré family, has held internal discussions about a possible deal involving WPP. Sources in the City claim that the investment funds Apollo and KKR have also looked at some of the group's assets, although no formal offer has been made at this stage. Amongst options on the table are a total acquisition, a significant stake, or a partial breakup of the group, particularly around WPP Media, its subsidiary specializing in the purchase of advertising space.
Now valued at just £3bn (€3.5bn) compared with £24bn in 2017, WPP's market capitalization and credibility are melting away. Eight hedge funds have taken short positions representing 8.5% of its shares. Short sellers are betting on a continued decline, fueled by a possible exit from the FTSE 100 index, which would lead to divestments from index funds. Founded by Sir Martin Sorrell in 1985, the multinational has experienced a rapid decline, accelerated by the departure of its founder, internal tensions and performance deemed "unacceptable" by its new boss, Cindy Rose. Faced with growing pressure, WPP has commissioned McKinsey to conduct a strategic review of its activities, even as a class action lawsuit by investors looms in the US.
Havas, which was reintroduced to the stockmarket a year ago as part of the Vivendi split, is worth only €1.5bn.
