Legal challenge to WPP's deal

AN AMERICAN shareholder has issued a writ against Grey Global, the advertising group being bought by Sir Martin Sorrell's WPP for £794m. David Shaev claims the deal, which will see Grey chief executive Ed Meyer walk away with more than £28m, is unfair to other shareholders.

Shaev filed his writ at Delaware Chancery Court. It says the sum going to Meyer if the sale is closed next year - it could be £45.5m if the sale is finalised this year - is unfair as it reduces the amount public shareholders might receive.

Meyer, 77, has been at Grey for five decades and controls 60% of the voting stock.

The European Commission is reviewing the proposed acquisition, a process that could be delayed after WPP, where Sorrell is chief executive, initially failed to complete the paperwork required.

WPP, the world's second-biggest advertising group behind US firm Omnicom, said it would buy Grey in a cash and shares deal.