Print Published 2nd Nov 2017, 11:26

WPP accuses ADK of breaching share agreement

WPP has accused the Japanese marketing group Asatsu DK of breaching a stock purchase agreement entered into in August 1998.  As a result of the alleged breach, WPP claims that it is entitled to retain its 24.9% shareholding and to terminate the alliance between the two groups.

ADK had already given notice of its intention to terminate the alliance when it recommended a £1 billion bid from the US private equity fund manager Bain Capital on 2 October.  But WPP had claimed that ADK’s notice was invalid (see WPP questions validity of ADK termination notice and WPP tie-up “caused delays” to ADK’s innovations and reforms).

Yesterday it emerged that WPP was seeking an injunction in the Tokyo District Court and a formal declaration that, among other things, ADK’s termination notice was invalid and ADK had no right to dispose of WPP’s shareholding.