Lerwill Departs as Aegis CEO

Robert Lerwill is to stand down as group CEO of Synovate parent Aegis, at the end of this month. Chairman John Napier will take on his responsibilities on an interim basis. Aegis shares leapt 17% today as rumours linked the move to a possible merger.

Last Friday, Lerwill told a conference Aegis was likely to slow down its acquisition activity in 2009 and focus on cost control. He added that the group was sticking with its 2008 profit guidance, but predictions of revenue growth in the fourth quarter, the group's most significant, were difficult due to the economic crisis. He told Reuters that forecasts would be 'very conservative'. In October Aegis reported revenue growth of 7.3% for the year's first nine months.

Former AGB Chief Exec Napier, appointed at the end of June this year, said the board wished his predecessor well and thanked him for his contribution. 'The strength of Aegis is the performance of its two large international businesses: Aegis Media and Synovate. They are both well-managed and we expect their combined 2008 operating results to be broadly in line with the average of current market expectations.'

Lerwill said he had enjoyed his time at the firm, and added: 'I leave the group in good hands, with a strong management team capable of meeting the demands of the future. I wish them every success.' He joined the Board in 2000 and became CEO in February 2005, replacing Doug Flynn. Lerwill was Group Finance Director of WPP Group plc from 1986 to 1996, and then joined Cable & Wireless.

By 3.10 GMT today, Aegis shares were up more than 17% at 58p, making the top ten risers in the FTSE 250. Speculation about a possible merger with Vincent Bollore's Havas has been revived by the departure of Lerwill, although other analysts linked it with the loss of the significant Renault media account earlier this month to rival Ominicom.

Web sites: www.aegisplc.com and www.synovate.com .

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

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