WPP Announces Growth As Aegis Bid Pressure Increases

WPP saw a 23% rise in revenues over the first nine months of 2005. Revenues for its information and insight division (which includes Research International and Millward Brown) grew by 10%. Meanwhile, the company has been given less than a month to decide whether to bid for Aegis.

On a like-for-like basis - excluding the impact of acquisitions and currency fluctuations - the company's revenues grew by just under 5% in the third quarter of 2005 (5.5% for the first nine months of the year).

Revenue for the company's information, insight and consultancy division increased by 7% in the third quarter on a like-for-like basis. Figures for the de-consolidated AGB (www.mrweb.com/drno/news3316.htm ) are no longer included, which means the actual growth was just 1.5%. This compares with 30.8% growth in the third quarter for the company's advertising and media investment management division.

According to a statement from WPP, 'prospects for improvements in trading performance remain good'. The group has increased its forecast for revenue growth for 2005 from 3-4% to 4-5%.

Last week, the Takeover Panel instructed WPP and US private equity firm Hellman & Friedman, to clarify their intentions regarding a potential bid for Aegis by November 25. However, WPP Chief Executive Sir Martin Sorrell says Aegis, which owns MR firm Synovate, has not yet provided his company with enough information.

Reports suggest that, in the event of an offer, Hellman & Friedman would buy the main Aegis media business, while WPP would concentrate on Synovate.

Meanwhile, Havas Chairman Vincent Bolloré has increased his stake in Aegis to 20.8%, but has not said that he is looking to buy the company. Publicis, which had considered bidding for Aegis, withdrew its interest earlier this month.

The companies are online at www.wpp.com and www.aegisplc.com.

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