Harte-Hanks, the subject of acquisition rumors for more than a month, is reportedly in talks with advertising agency Young & Rubicam. According to wire reports, Y&R has offered the direct marketer more than $28 in stock for each share.
The deal would put the total value of the acquisition at just under $2 billion. The 52-week high for Harte-Hanks stock is 27 3/4. The stock closed yesterday at 23 5/8, up 1 3/16.
Y&R has been the subject of on-again, off-again purchase talks by United Kingdom’s WPP Group plc, according to reports.
Sources have mixed views on the likelihood of the WPP and Y&R deal. According to CBS MarketWatch, WPP’s chief executive Martin Sorrell characterized a merger as an “extremely sensible fit.”
But Y&R CEO Thomas Bell is alleged to be unhappy with some terms of the WPP deal, a report said. Reports late Wednesday had Y&R speaking with a merger candidate believed to be someone other than WPP.
It remains unclear if either acquisition would preclude the other. WPP has, according to reports, agreed not to make a hostile offer to buy Y&R.
Harte-Hanks, San Antonio, TX, also released its first-quarter 2000 financial results yesterday. For the quarter, the company had operating revenue of $226 million, up 20% from $188.1 million, and net income of $17.8 million, up 15.8% from $15.3 million.
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