Aegis says it was not source for profits story

by Daniel Farey-Jones, Brand Republic 12-Oct-05, 10:00

LONDON – Aegis has come out to say it was not the source of a story claiming that its 2006 profits will be higher than its investors have been assuming during the company's ongoing takeover scenario.

The Independent story, which was not attributed to any source, said that Aegis' string of 25 acquisitions, mostly digital agencies, over the past year will make its 2006 earnings "substantially" higher than current market forecasts.

The paper claimed that this will drive investors' valuation of Aegis higher. The company is currently being targeted by Publicis and WPP, which is looking at a joint bid with Hellman & Friedman. Havas has also not ruled out the possibility of buying some of the company. Publicis is reported to be ready to bid £1.6bn, having already approached Aegis with an informal offer of £1.4bn.

Aegis, headed by chief executive Robert Lerwill, issued the following statement: "While acknowledging that acquisitions made in 2005 will contribute to the company's performance for a full year in 2006, the company clarifies that it was not the source of the comments made as to the level of future profits and neither confirms nor denies that the level of profits may exceed any previous reported period."

Aegis shares closed last night at 139.5p and were down slightly this morning.

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