Havas Will Not Renew Tempus Offer

Havas Will Not Renew Tempus Offer

Havas Advertising has this morning announced that it will allow its offer for Tempus to lapse after the next deadline, Monday 24th September, has passed. Earlier this week the group extended the period for acceptance of its original offer but resisted the opportunity to make a higher bid. Now Havas says that it will let July’s “full and fair” offer lapse citing worsening market conditions, exacerbated by the events of last week in the US, as the primary reason. A press release from Havas stated that: “the Group does not consider that it is in its shareholders’ interests to submit a higher offer”.

In the period since July 19th, when Havas made their initial offer, market conditions have worsened considerably. Prospects for economic recovery have fallen and this has impacted severely on the advertising market causing several analysts to cut their forecasts for the medium and long term. The situation has worsened following the terrorist attacks in the US which has left several industries in crisis.

Alain de Pouzilhac, chairman and CEO of Havas Advertising, stated: “We must not go through with this bid now that a recession is more and more likely. It would be unwise. We have a duty both to our shareholders and to our employees who have placed their confidence in us. To make a higher bid would be unreasonable in an environment which is getting worse by the day and which has been hit even harder by the recent terrible events in the USA. I would like to thank all the Tempus managers who have supported our offer, which made complete strategic sense.”

“I remain confident in MPG’s total ability to continue to build a dynamic and profitable media activity for the future. In this new environment, MPG’s market position, combined with our financial capacity, will generate some outstanding opportunities. Today was no longer the right moment.”

Havas Advertising’s rival for Tempus, WPP, have not issued a response to the news this morning.

Shares in Tempus fell from an opening price of 552˝p to 540p following the announcement.

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