Uncertainty Follows Lerwill Exit

Analysts are watching Aegis closely following yesterday's surprise departure of CEO Robert Lerwill. Initial speculation about easing conditions for a Havas merger has given way to caution, and the share price has not continued its rise after a brief morning surge.

Reports in UK paper The Times (www.timesonline.co.uk ) and elsewhere suggest Lerwill fell out with Chairman John Napier, and that his departure may indicate a softer approach to the possibility of a takeover by Paris-based Havas, whose Chairman Vincent Bolloré owns 29.85% of Aegis and who has tried five times to get his nominees on its board. However, most of his stake was acquired at a much higher share price - Aegis traded at 134p in September 2007 and at 110p as recently as September this year. Today, the price rose only to 63p by 9am and stayed around that mark until the close.

Analysts have suggested that despite Napier's specific (and to some, significant) talk of the two distinct divisions of Aegis yesterday, rapid sale of one or both is unlikely due to the economic climate and its effect on the prospects for media and advertising companies. The Times says Bolloré 'intends to bide his time' and 'has no active proposals for a tie-up.'

Synovate was seen as a target for WPP, before Sir Martin Sorrell's group gobbled TNS last month, and may still be in his sights for the future, but there is also speculation that GfK, which missed out on TNS, could be in the market for Synovate if the change of management indicates any kind of willingness to sell.

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