Bollore faces dissent from major Aegis shareholders

by Mark Banham, Brand Republic 22-May-06, 08:55

LONDON - The third-largest stakeholder in Aegis Group is set to back the main board in its move to block the two candidates recommended by Vincent Bollore, the Havas chairman and main Aegis shareholder .

Aegon, which owns a 4.9% stake in the media planning and buying business, looks increasingly likely to join fellow fund manager Fidelity, and 9.3% shareholder in the group, in opposing the nominations, leaving the three largest shareholders in the network forced into stalemate.

Lord Sharman, chairman of Aegis, is due to meet with shareholders this week to discuss the nominations and the increasing likelihood that Bollore will make a full bid for the company.

Bollore increased his shareholding for the second time on Friday from 27.81% to 28.81%, edging ever closer to the 30% mark that, under UK governance, would force a mandatory takeover bid for the media independent.

Last Wednesday, Bollore nominated Philippe Germond and Roger Hatchuel, via his company Group Bollore, to the Aegis board.

The move was almost instantaneously condemned by Robert Lerwill, Aegis chief executive, who looked to block the appointments.

Aegis claimed conflict of interest, stating that Bollore was not fit to nominate the candidates because he is chairman of rival advertising network Havas.

The group said: "The board believes that Groupe Bollore's proposal represents fundamental conflicts of interest: Vincent Bollore holds the chairmanship of and owns a substantial interest in Havas -- a major direct competitor of Aegis."

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