Bollore vows to continue fight for places on Aegis board UPDATE

Bollore vows to continue fight for places on Aegis board UPDATE

	Published : Wed, 04 Apr 2007 14:34 By : Agencies Print this Story

(Adds detail, background, Aegis share price)

LONDON (AFX) - Aegis Group PLC's biggest shareholder Vincent Bollore has vowed to continue his bid for representation on the board of the UK media buying and market research group despite being resoundly rejected for a third time by Aegis shareholders.

At an Extraordinary General Meeting ninety three pct of non-Bollore Aegis shareholders voted against Bollore's nominations of Philippe Germond, a former executive at telecom giant Alcatel, and Roger Hatchuel, a former chairman of Pearl & Dean, the cinema advertising company.

Aegis, which advises companies on how to spend their marketing budgets and owns Europe's biggest media agency, Carat, has said the nominees from a rival company represent a 'irreconcilable' conflict of interest and would undermine its independence.

'Over 90 pct of independent shareholders have now rejected these proposals three times in ten months,' Aegis chairman Lord Sharman said in a statement. 'They see board representation for a direct competitor as an unacceptable conflict of interest.'

But talking this morning ahead of the EGM result, Bollore -- the chairman of French advertising group Havas who has a 29 pct stake in Aegis -- said he would call three shareholder meetings per year at Aegis until his nominated directors get a place on the group's board.

'We will follow the votes and believe that one day the votes will come to us,' Bollore told journalists at the EGM in London that was convened at his request.

'My concern is that Group Bollore has put about 0.5 bln stg (of investment through its stake) in Aegis. We are not seeking to control Aegis. I want to put new blood into the board.'

At an Annual General Meeting last June and an EGM last November, 94 pct of of non-Bollore Aegis shareholders voted against Bollore's nominations.

Bollore is close to the 30 pct threshold that would require him to make a full takeover bid for Aegis, fuelling takeover speculation over the past two years.

Some analysts reckon that he wants to force a tie-up with Havas without launching a formal takeover bid, despite repeated denials by Bollore.

Bollore gained control of Havas by steadily raising his stake and replacing the management with his own nominees at a stormy AGM in 2005.

At today's EGM, Bollore again rejected the conflict-of-interest argument by the Aegis board.

He said other companies had representatives on rivals' board, citing the example of British Airways having two seats on the board of Spanish airline Iberia.

He also repeated calls for talks with the Aegis board. 'For the board not to speak to a long-term shareholder with a 29 pct (stake) is not a good or acceptable situation,' Bollore said.

At 14.05 pm, Aegis shares were down three-quarters of a penny at 148-3/4, valuing the company at 1.70 bln stg.

Aegis has a strong presence in the fast-growing online ad market, making it one of the most prized assets in Europe's advertising industry.

In 2005, Aegis was subject to two takeover approaches in 2005.

The approaches from French advertising company Publicis Groupe SA, and a joint approach from US private equity firm Hellman & Friedman and advertising giant WPP Group PLC, did not result in a firm offer being made.

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