WPP GROUP RAISES PROPOSED RIGHTS ISSUE
<WPP Group Plc>, which on Friday secured
agreement for its bid for <JWT Group Inc> by increasing its
offer, said it would raise its planned rights issue to raise
213 mln stg instead of 177 mln to finance the deal.
    On Friday the two groups said they had agreed to merge
after WPP raised its cash price to 55.5 dlrs a share from 45.0
dlrs, valuing JWT at 566 mln dlrs.
    Under the new rights proposals, WPP shareholders could
apply for new ordinary shares at 875p each on a two-for-one
basis.
    The issue has been underwritten. The remainder of the
purchase price would come from a loan facility of up to 260 mln
dlrs.
    The issue and the proposed acquisition of JWT remain
conditional on the approval of shareholders.
    The original proposal for the rights issue was on the basis
of five new shares for every three held. The revised version
would involve the issue of up to 24.3 mln new shares,
representing 65 pct on the enlarged fully diluted share
capital.
    WPP shares were quoted at 0757 GMt unchanged at 10.70 stg.
 REUTER
