WPP and Bolloré in Joint Aegis Bid Rumours

New reports suggest that WPP Group and its US private equity partner Hellman & Friedman are teaming up with French financier and Vincent Bolloré, Chair of Havas, to make a joint bid for Aegis, which owns Synovate.

Bolloré has been gradually building up his stake in Aegis, and now owns about 25% of the company, although he has previously said he is not interested in making a bid.

The Wall Street Journal today states that WPP, Bolloré and Hellman & Friedman have discussed the possibility of a joint bid, worth at least 1.62 billion pounds. The UK's Daily Telegraph said the Aegis board is considering the three-way proposal, and is undecided whether to recommend the plan to its shareholders.

In an interview with the French newspaper Liberation, WPP CEO Martin Sorrell said: 'Vincent Bolloré controls Aegis nowadays.' He added: 'We are looking at what we could do, with an investment firm. We are busy sharpening our pencils, we have received a certain amount of information but we do not have enough yet.'

WPP has said it is interested in Aegis's MR arm Synovate, while Hellman & Friedman is looking to acquire the company's media buying and planning units.

Last month, the Takeover Panel gave WPP a deadline of November 25th to table an offer for Aegis or withdraw, though some reports suggest Bolloré is asking the Aegis board for an extension.

WPP is online at www.wpp.com and Synovate at www.synovate.com.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.