WPP (LON:WPP) has accused its former chief executive Martin Sorrell of breaching confidentiality obligations by pursuing a takeover target he first encountered while he was at the helm of the FTSE 100 group, the Guardian reports. Sorrell left WPP earlier this year following an investigation into allegations of ‘personal misconduct’ and subsequently set up new venture S4 Capital with the purpose of building a ‘next generation’ advertising business.
WPP’s share price has advanced in London this morning, having added 0.90 percent to 1,180.50p as of 10:29 BST, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.02 percent lower at 7,601.94 points. The group’s shares have lost more than 26 percent of their value over the past year, as compared with about a 3.6-percent gain in the Footsie.
WPP in row with ex-boss over MediaMonks
The Guardian reported yesterday that WPP’s lawyers had written to the group’s former boss Martin Sorrell, saying his move to buy digital production business MediaMonks is unlawful because he is using information gathered when he and the FTSE 100 group were looking at acquiring the business before he resigned.
This is “likely to be in breach of confidentiality obligations,” the group said. The newspaper further reports that WPP could block Sorrell from collecting up to £20 million in future payouts from the group if he pursued a takeover bid for MediaMonks.
Analysts on advertising giant
The 27 analysts offering 12-month price targets for WPP for the Financial Times have a median target of 1,375.00p on the shares, with a high estimate of 1,845.00p and a low estimate of 1,060.00p. As of June 29, the consensus forecast amongst 29 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.