Aegis and Dentsu deal is “for the competition to worry about”

We dialled in on the Aegis and Dentsu joint conference call this morning to bring Newsline readers the key responses to anlayst and press questioning…

Aegis chief executive Jerry Buhlmann stated that Aegis and Dentsu, following the news of the £3.16 billion bid this morning, would represent more than 70 of the top 100 global advertisers in the new company.

Regarding the likely managerial composition of Aegis, representatives of the company were quick to add that there would not be any immediate change to the managerial structure, with major figures set to remain until at least the end of 2013.

Further to this, it was stated that all managerial details would be worked out after the takeover has gone through – which is expected to occur between October and December

Buhlmann reassured those present that “this is a deal based on growth opportunities”, adding: “Cost cutting was not a motivating factor behind the deal.” All of Aegis’ offices will remain open in Europe, including the company’s London base.

The “complementary” nature of the two companies was continually emphasised on both sides.

When asked about the potential of the new Aegis and Dentsu combination to challenge the market leader, WPP, Buhlmann said: “We believe Aegis and Dentsu can become even more competitive as a result of this deal, and that’s something for the competition to worry about.”

In response to a question from the Guardian‘s Mark Sweeney as to why such a “high price” was paid, Dentsu senior vice president Tim Andree explained: “It [240 GBp per share] was a fair price for a company performing at the top of its industry in both growth and margin.”