Nuremberg, Germany  - A European takeover fight turned fierce Wednesday, with the German market-information company GfK announcing it would make a cash bid for its British rival Turner Nelson Sofres (TNS).

GfK said an earlier proposal for a merger of equals with TNS was being abandoned by mutual agreement, and it would trump a hostile takeover bid for TNS earlier in the day from the British advertising group WPP.

GfK's German owners had resisted the merger proposal, suggesting a new London management would mean job losses in the city of Nuremberg, where GfK is based.

This encouraged WPP to revive its earlier unsuccessful takeover offer.

In an industry dominated by Nielsen of the United States, the companies survey ordinary consumers and TV viewers to discover what products and media they prefer, and sell this information to companies that need to know how well they are doing in a market.

WPP chief executive Martin Sorrell said his bid valued TNS at 1.08 billion pounds.

GfK said it would act in concert with a potential investor it had already picked, but it did not name the investor or say how much it would bid.

GfK is seeking extended coverage in the fast growing markets of Asia, Latin America and Eastern Europe.

With TNS, it would have annual sales of 2.7 billion euros (4.2 billion dollars).

Its bigger rival, Nielsen Co, has annual sales equivalent to 3.2 billion euros. (dpa)