WPP to join hands with stake holder Bollore to bid for Aegis

WPP to join hands with stake holder Bollore to bid for Aegis

	Published : Mon, 21 Nov 2005 11:35 By : Andrew Stead Print this Story

LONDON: Takeover target British advertising firm Aegis Group Plc.'s biggest stake holder Vincent Bollore may broker a deal with rival bidder WPP Group Plc. in buying out the firm.

According to sources, the British advertising major WPP, which has been given a deadline until Friday by the British takeover regulator, is considering whether it can, along with its partner, U.S. private equity firm Hellmann & Friedman LLC, get French national Bollore's support. Bollore, who is chairman of French advertising group Havas SA, owns 24 per cent in Aegis.

Aegis is resisting the bids. Aegis had refused to comment on the speculations, but a spokesperson said the company is more than happy to consider viable and realistic bids that will benefit its shareholders. He said WPP or Hellmann & Friedman had so far not put any proposal on the table.

Bollore has been known to be hiking his stake in Aegis ever since the company revealed in August that it had received offers from Havas' rival Publicis Groupe SA.

According to sources quoted by newspapers in Britain, Bollore and Martin Sorrel, chief executive of WPP Group, are interested in different units of Aegis. WPP is keen on Aegis' market research group Synovate, and it has plans to offer 350 million pounds in cash. In that case, Bollore would take control of the remainder of the company, with a cash offer of about 1.6 billion pounds. WPP may opt for a minority stake in the company's media planning and buying units, while Hellman & Friedman would provide equity and take a stake in the company. The media buying business, Carat, has a strong presence in Europe.

WPP may not look at Aegis as a whole in view of regulatory issues it may confront.

Bollore, meanwhile, is understood to have talked to Aegis's bankers to extend the Friday deadline by two months so that he could put together an offer. His representatives did not mention WPP by name.

Aegis' chief executive Robert Lerwil declined to rule out granting an extension, but said these things can be considered only if Aegis received a concrete and viable offer.

Aegis' shares had closed on Friday at 125 pence, giving the company a market cap of 1.4 billion pounds.