WPP take-over of STW gets overwhelming approval but shareholders question deal timing

STW WPP Merger got overwhelming support

A major shareholder group has questioned whether STW has sold out to WPP at a discount rather than holding out until the global holding company could have been forced to pay more for its 61.5% controlling stake in the business.

In an Extraordinary General Meeting that lasted just 30 minutes this morning, shareholders in STW overwhelmingly approved the $512m takeover by WPP which is being billed as a merger of the two businesses.

Almost 432m shares in STW will be handed to WPP, creating a newly merged business which will be known as WPP AUNZ and encompass a wide range of communications agencies including Ogilvy, JWT and GPY&R.