City File: Shares in WPP

SHARES in WPP, the advertising group which only a few months ago teetered on the brink of collapse, look severely undervalued, according to a growing band of analysts. With the refinancing secured, the shares are still trading at just 30p, compared with the 60p at which bankers agreed to swap their debt into equity. The company is valued at just pounds 135m, and with dollars 2.4bn ( pounds 1.2bn) of turnover WPP could find itself at the wrong end of a bid.