Print Published 15th Dec 2011, 09:20

WPP increases stake in Chime

Over the last few days WPP has been buying small parcels of shares in Chime Communications, increasing its historic holding from 15% to 17.2%.  

Earlier this year WPP’s shareholding was diluted below 15% when Chime issued shares to pay for acquisitions.  The recent share purchases appear to have taken advantage of Chime’s lower share price to rebuild WPP’s stake.

Chime’s share price has been depressed by news of the loss of a US Government contract.  However, the group has said that it will still meet its current year’s profit projections apart from the impact of restructuring costs (see Chime faces restructuring costs as US Government contract ends).