Global advertising giant, Publicis, yesterday confirmed it was unlikely to bid for control of Grey Global, the world’s seventh largest advertising agency, clearing the way for rivals WPP.
Maurice Levy, chairman of the Paris based group told a French newspaper: “It was not necessarily in the best interest” for his company “to make a possible offer for the whole of Grey Group”.
During the interview, Levy said that there may have been some assets within Grey that would have complemented Publicis operations. He added: “We have always based our strategy on the desire to be the best, and not the biggest.”
Publicis and WPP had been thought to be the two most likely bidders for Grey, which is valued at $1.5 billion (£805 million). The group was put up for sale last month by Ed Meyer, the controlling shareholder.
Sir Martin Sorrell, chief executive of WPP, has not yet decided whether he will submit a bid as he is waiting on the year’s final accounts being available. Last year profits at Grey reached $29 million, on sales of $1.3 billion.
Havas, a small French marketing group has also been linked as a contender to bid but its thought that it would be stretched by the purchase of Grey.
Grey is sought after because it handles 30% of the advertising spend of consumer goods giant Procter & Gamble, who has the second largest advertising budget in the US (see Top US Advertisers Reach $90.31 Billion In 2003).
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