Bolloré's Stake in Aegis Group Tops 10%

NEW YORK French corporate raider and Havas chairman Vincent Bolloré continues to increase his stake in London-based Aegis Group, parent of the Carat media agency network.On Oct. 1, Bolloré confirmed that his ownership in Aegis has climbed to 11.38 percent, almost double his stake one week ago.The investments in Aegis are separate from Havas, made through the Bolloré Group operation. That company confirmed the heightened stake in Aegis in a statement. Bolloré representatives could not be reached for additional comment. Bolloré's increased ownership in Aegis follows a confirmation two weeks ago by Paris-based agency holding company Publicis Groupe that it has held "preliminary" talks with Aegis about an acquisition.Now that Bolloré's Aegis stake has passed the 10 percent threshold, he can potentially be a thorn in the side of any potential rival suitor, assuming that an acquisition is not his ultimate goal, according to analysts familiar with U.K. takeover laws.Under those statutes, the potential buyer of a public company has to accumulate more than 90 percent of the latter's shares, otherwise the remaining shareholders can insist that the company remain listed on the British stock exchanges.At his current level of investment, Bolloré also has the right to demand shareholder meetings and submit proposals for consideration, said Richard Hitchcock, an analyst at Numis Securities.At present, Bolloré would appear to be in a position to extract concessions from other potential Aegis buyers, analysts said."He can force them to maintain a listing," said Hitchcock of Bolloré. "I don't know his game plan, but perhaps it's to get himself into a position where he can agitate a bit more and perhaps cause a bit of a nuisance when it comes to trying to squeeze a bit more value out of the business."Hitchcock said he does not believe Bolloré will make an offer for all of Aegis, something he would be legally required to do under British law if his stake reaches 30 percent.If Publicis does make an Aegis bid, Bolloré could try to persuade Publicis to form a joint media-buying venture between Havas' Media Planning Group and Aegis' Carat or its co-owned media specialist shop Vizeum, sources said. Bolloré has acknowledged in the past that Havas is weak in media buying. What remains unclear, said Hitchcock, is whether there is greater value to Publicis to forming such a venture, or simply absorbing Aegis into its own group of media agencies, which include Starcom MediaVest Group and ZenithOptimedia.

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Bolloré's Stake in Aegis Group Tops 10%

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