WPP PLC (LSE:WPP) "weighing options" for its 40% stake in Kantar should drive a reassessment of what this asset or parts of the group’s portfolio could be worth, suggests US bank Citi.
Reports last week suggested WPP was mulling a sale of its Kantar holding and Citi reckons that, plus all the other associate and investment holdings, might be worth as much as £2.5 billion.
Even taking a cautious line would suggest £1.5 billion, which would make a fairly significant difference to the group's net debt balance, which stands at £3.5 billion-£4 billion on an average basis, said the broker.
“To the extent that these reports highlight potential ‘hidden value’ within this associate/investment portfolio, even without confirmation of a sale, we think they should support sentiment.”
Shares today were up 0.7p at 734.2p.