WPP ups stake in STW Communications

stw logoSir Martin Sorrell’s WPP has picked up more shares in struggling STW Communications as rumours of a takeover bid from the world’s largest agency holding group continue to swirl.

A posting to the Australian Securities Exchange today showed WPP’s investment vehicle Cavendish Square Holdings has bought another 10 million shares taking its stake in the company to 23.65 per cent.

STW (ASX:SGN) controls agencies including Ikon Communications, Ogilvy, Tongue, The Brand Agency as well as J Walter Thompson and Mindshare which it jointly owns with WPP.Rumours of a takeover from WPP started swirling at the start of the year as it upped its stake in the group despite a disastrous 2014 on the stock market.

STW, which is Australia’s largest agency holding company, has struggled in recent times with its share price dropping from $1.21 last October to 70c today. In October 2013 it traded at $1.60.

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