WPP'S Sorrell eyes higher dividend payout ratio

BARCELONA, Nov 19 (Reuters) - WPP Chief Executive Martin Sorrell said on Wednesday he would like, as a large shareholder, to see the payout ratio for the advertising group's dividend increase to 50 percent from the current target of 45 percent.

Speaking at the Morgan Stanley Tech, Media and Telecoms conference, Sorrell said the board would discuss a new target of 50 percent if it hits its target for this year of 45 percent.

"We have said that we will try to get to 45 percent pay out ratio this year, that will probably happen, and then the board will have to sit down and decide whether they will go beyond 45 percent.

"From my point of view as a significant shareholder in WPP (LSE: WPP.L - news) , with most of my net worth being tied up in the company, personally I would like to see an increase to 50 percent but whether that carries the board or not is another case."

He said going above that did not make sense.

WPP in 2013 had a dividend pay-out ratio of 42 percent of headline diluted earnings per share.

Sorrell also said he expected to see further consolidation in the advertising sector, perhaps around smaller rivals Havas (Other OTC: HAVSF - news) and IPG, after a bigger deal between Omnicom and Publicis (Paris: FR0000130577 - news) fell apart.

"In the agency space, I think you will see consolidation as well," he said. "There are basically six network. I doubt that in a few years time the situation will be as it is today."

(Reporting by Leila Abboud, writing by Kate Holton; editing by Paul Sandle)