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WPP report May 2000



Name: WPP Group PLC
Symbol: WPPGY (American Depositary Receipts)
Shares Held: 12
Date Purchased: 27-Mar-2000
HPD Paid: $84.6667
Currently Trading: $58.625
Percentage Loss: 30.76%
Annualized Return: -92.06% (but we've had it less than two months)

Broker Recommendations:
   Strong Buy     2
   Moderate Buy   5
   Hold           1
   Moderate Sell  1
   Strong Sell    0

   Consensus      2.06 (1=Strong Buy, 5=Strong Sell)

Y&R Merger

When we last met, Young & Rubicam (NYSE: YNR) was considering a $4
billion buy-out from our friends at WPP.  Y&R was said to be reluctant
to accept the all-stock deal.  Negotiations continued, with Y&R
executives asking for $60 million in "golden parachutes," and haggling
over whether Y&R stockholders would end up with 30% or 40% of the merged
company.  Y&R invited in a new bidder, the French advertising group
Publicis.

Publicis never seemed that interested in a deal (their Renault contract
would be a conflict with Y&R's Ford account), but the gambit worked.
WPP came back with a higher bid, shortly after announcing they were
dropping out of the bidding.  The new deal was first valued at $5.5
billion, but as WPP shares fell it was worth $4.3 billion on Friday
afternoon.

On May 12, Y&R CEO Tom Bell didn't mention the merger until 20 minutes
into their annual meeting, and waited until he was questioned during a
conference call to announce that he'd be leaving the company.

Y&R shareholders can elect to receive either 0.835 new WPP American
depositary receipts, or 4.175 new WPP ordinary shares for each Y&R
share, valuing Y&R shares at $53 each, a 9 percent premium on Thursday’s
(5/11) closing price, a statement said.

The 77-year-old Y&R, which went public only two years ago, brings a
prestigious roster of clients including AT&T, Cadbury-Schweppes and
Colgate-Palmolive.  Y&R shareholders will get 1/3 of the new company,
which looks about right from a revenue perspective.  WPP posted $1.6
billion in revenue for the first half of 1999, the most recent period
for which figures are available.  Y&R achieved revenue for all of 1999
totaling $1.72 billion.

Other News

Hill and Knowlton Public Relations, part of WPP Group, picked up some
new high-tech clients.  These include Compaq Computer Corporation;
Pre-Cell Solutions, Inc., which sells pre-paid cellular service under
the brand name EZ PrePaid; and HyperFeed Technologies, Inc., which
provides real-time quotes for over 600,000 stock, option, and commodity
issues over the Internet.

WPP appointed Steven Hamilton, President and COO of Turner Broadcasting
System, to its board of directors.  Hamilton is a former President and
COO of Young & Rubicam, and was previously a VP with Booz, Allen &
Hamilton.