Global advertising firm, WPP and private equity firm, Hellman & Freidman are expected to withdraw from bidding for media and communications group Aegis, with the companies thought to be releasing statements claiming that Aegis has rebuffed their offers.
According to reports in the
Wall Street Journal Aegis turned down offers from WPP and Hellman & Freidman, as well as a cash offer from an unnamed player.
Industry speculation claims that the mystery bidder could be Vincent Bollore, who has been steadily increasing his stake in Aegis over the past few months (see Bollore Raises Aegis Stake To 9%).
The Wall Street Journal said that Aegis had not received an offer of any “substance or merit” from WPP or Hellman & Freidman, with contracts between the firms being sporadic over the last few months. The Aegis board was reported to consider recommending an offer to shareholders that was plausible.
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).
Rival buying firm Publicis recently announced that it would not pursue a bid for Aegis, ending its interest in the firm which started speculation over a sale last month (see Bollore Raises Aegis Stake To 9%).
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