WPP loses first appeal on Tempus

SIR Martin Sorrell's WPP has lost its first appeal against the Takeover Panel's ruling that it cannot drop its £436m takeover bid for media buyer Tempus.

The full Panel heard Sorrell's case that there had been 'material' changes at Tempus since he launched his bid yesterday, but backed its own executive and dismissed the appeal.

However, WPP could still go to the Panel's appeal committee within 24 hours of receiving the detailed reasons for the decision, which should be delivered on Monday.

After that, Sorrell will be left with the option of taking the Panel to a full judicial review which could prove unpopular among City professionals. In the past, the courts have been reluctant to overrule the Panel.

WPP said it would make 'a further announcement' when the detailed reasons were published. Tempus welcomed the ruling, saying it hoped WPP would now 'bring to an end a period of uncertainty', particularly for its staff. 'It is in the best interests of Tempus' business to bring this matter to a close and begin integrating the businesses as swiftly as possible,' the firm said.

Tempus shares rose 5p to 527 1/2p while WPP ended unchanged at 622 1/2p.