WPP says GfK misleading market on TNS bid

By David Schlesinger

BEIJING (Reuters) - WPP (WPP.L), the world's No. 2 advertising and marketing firm, said on Monday that German market researcher GfK (GFKG.DE) was misleading the market about its intentions to acquire British rival Taylor Nelson Sofres TNS.L.

WPP has made its own $2.2 billion offer in cash and shares in a hostile bid for TNS, which has said publicly it prefers to partner with GfK.

The German company said, however, that there was no guarantee a bid would be made even as the two companies are in talks.

"They are misleading the market," WPP CEO Martin Sorrell, told Reuters in an interview from his company's headquarters in the Chinese capital.

"They say they have access to an unidentified but substantial source of capital," said Sorrell, surrounded by modern art in the central shopping district of Beijing. "It is time to put up or shut up."

WPP is the only official bidder, and is waiting for the first closing date of August 29, when TNS shareholders will vote on the offer.

A merger between GfK and TNS would create a market research group to rival market leader AC Nielsen, which is owned by a private equity consortium.

Sorrell said if his bid for TNS failed there were other potential acquisition opportunities in the industry including Nielsen, IMS Health Inc (RX.N) and Synovate, owned by British rival Aegis (AEGS.L).