Global advertising group, WPP is reported to be considering its options for a joint bit for Aegis Group by obtaining support from the Group’s biggest shareholder, Vincent Bollore.
The French entrepreneur has recently been strengthening his position in the company, now owning a quarter of the media group.
According to a report in Saturday’s Daily Telegraph, Bollore has approached Aegis with a plan to spilt the company between its two rival bidders, WPP and himself.
The end of last month saw WPP given a four week deadline to table a bid for rival Aegis by the UK’s Takeover Panel, with WPP’s chief executive, Martin Sorrell, saying that he was still considering a bid for Aegis, following the company’s third quarter results, which reported a 5% rise in organic growth, with WPP’s own market research unit under performing the market with an increase of only 1% in turnover(see WPP Sees Revenue Rise By 26% In Q3 2005).
Speaking in a recent interview on the subject, Sorrel said: “We are looking at what we could do, with an investment firm. We are busy sharpening our pencils, we have received a certain amount of information but we do not have enough yet.
Bollore has increased his stake in Aegis steadily since the end of September, when he held a stake of around 6% in the company (see Bollore Raises Aegis Stake To 9%).
The businessman has repeatedly described his interest in Aegis as a purely “financial” one, although analysts have since speculated that he will soon attempt a tie-up between Aegis and Havas, of which he is the chairman and largest shareholder, possibly of their media purchasing operations.
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