WPP and venture capitalist enter race to buy Aegis

by Staff, Brand Republic 10-Oct-05, 08:00

LONDON – WPP Group and private equity firm Hellman & Friedman are understood to have entered the race to buy media buying and research company Aegis.

It is being reported that the two are considering a joint bid with sources quoted by Reuters suggesting that WPP is only interested in the Aegis-owned market research network Synovate.

If it did pitch in for Synovate, the rest of the business would then be broken up and sold on.

WPP has been steadily growing its market research business through its Kantar operation, which includes Millward Brown.

Hellman & Friedman is interested in the main prize -- the media buying networks Carat and Vizeum, which sees its interest dovetail with WPP's, making a joint bid possible.

The news follows reports that Havas chairman Vincent Bollore had upped his stake in the British firm, which owns Carat and Vizeum, to over 13%.

Now with the field of potential buyers filling up, a bidding war is likely. Sir Martin Sorrell's WPP is unlikely to be able to bid without exciting interest from competition authorities. It already owns three media buying networks in MediaCom, Mediaedge:cia and MindShare. Adding Carat could be seen as a step too far.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the Forum.