Shares in advertising giant WPP soared as markets opened on Monday following reports the firm was the subject of takeover interest.
The FTSE 100 group is said to be in the centre of deals chatter with interest from French rival Havas, as well as private equity firms Apollo and KKR.
As investors digested the news, WPP soared over five per cent in early trading to 303.10p.
The group has shed over 60 per cent in the year-to-date, setting it up to be demoted from the FTSE 100 index, following a fleet of challenges.
Chief executive Mark Read announced his departure in June after a 30-year stint at the London-listed business, of which seven were in the top job.
It followed WPP losing its crown as the world’s biggest advertisers amid a slowdown in sales across the UK and US and a prolonged slump in China.
WPP’s valuation takes a dive
The interest of a takeover, as reported by the Sunday Times, comes as the company’s valuation slumped to £3bn, a drastic fall from its peak of £24bn in 2017.
No formal bids have yet to materialise.
Havas – which is a part of French billionaire businessman Vincent Bolloré’s empire – is understood to have talks regarding a deal, which have been led by Bolloré’s son Yannick.
In July, WPP named Microsoft executive Cindy Rose as its new chief executive, who stepped into the role on 1 September.
The announcement came just 24 hours after WPP issued a stark trading update revealing a sharper-than-expected revenue slump and hundreds of job cuts across its media arm.
Shares plunged 13 per cent following the news, wiping hundreds of millions off WPP’s market value and taking it below the £5bn mark.
The appointment of Rose – who’s career spans major leadership roles at Vodafone, Virgin Media, and Disney – was viewed as a strategic pivot from the group in repositioning itself amid the changing sentiment from marketing around tech, AI and data.