• by Richard Whitman , Columnist, October 18, 2017

Opposition is mounting to Bain Capital’s $1.3 billion tender offer for ADK, one of Japan’s top agencies in which WPP, its largest shareholder, has a nearly 25% stake.

WPP is contesting the bid, saying it sharply undervalues the agency. The firm has been joined in recent days by other shareholders who say the bid is too low.

Earlier this week, Oasis Management joined shareholders opposing the deal, saying the Bain offer was inadequate.

So far, stakeholders in opposition account for approximately 45% of shares in the company. Bain indicated earlier that it would cancel the offer if at least 50.1% of shares were not tendered.

But, despite mounting opposition, Bain is standing firm, stating Wednesday “the offer is fully priced and provides shareholders with an opportunity to realize attractive value.”

Well, attractive is in the eye of the beholder, right? And it appears a growing group of investors don’t see it that way.

But we’ll see. There’s still time for maneuvering on both sides. Currently, the offer is open until November 15. But as WPP well knows from past experience, tender offers are frequently extended. (Why do the letters TNS come to mind?).

Stay tuned!