New Delhi, May 14: Global advertising major WPP Group plans to hike stake in Indian arm Ogilvy & Mather to majority 74 per cent by acquiring over 2.2 lakh shares from existing employee shareholders. WPP Holdings (Mauritius) Ltd holds 51 per cent stake in O&M Private Ltd at present and the increase in equity by the WPP Group will be done when WPP Group PLC of Britian acquires these shares of Rs 10 each, either itself or through any of its subsidiaries, sources said here today.
They said WPP has already approached the Foreign Investment Promotion Board with this proposal but the board decided to defer consideration on it.
Sources said, at the FIPB meeting on April 24, the information and broadcasting ministry sought deferment of the case. Besides, as per existing policy, a no-objection certificate is needed from the company under provisions of the press note 18 before any decision on the WPP proposal can be made.
O&M India officials could not be contacted for comments.
At present, a non-resident company S H Benson India holds 40 per cent stake in O&M while WPP Mauritius holds 11 per cent equity of the Indian ad agency.
Employees and shareholders hold another 49 per cent.

Bureau Report