Bollore's Aegis request looks doubtful after poor Havas performance

by Jacquie Bowser, Brand Republic 11-Apr-08, 15:45

LONDON - Unimpressive results at Vincent Bollore's Havas will do little to persuade Aegis Group shareholders to vote in favour of his latest proposal for board representation, according to a report.

Havas revenues in 2007 grew by 4.1%, which is the slowest of all the global majors, according to the latest Marketing Services Financial Intelligence report. In contrast Aegis grew by 11.1%.

Operating profit margins after goodwill charges were 11% at Havas and 15% at Aegis. Post-tax profits earned for shareholders in the year were a much improved £59m at Havas, but they still lagged behind the £90m reported by Aegis, according to the report.

Bob Willott, editor of Marketing Services Financial Intelligence, said: "Under Vincent Bollore's chairmanship, Havas has undoubtedly made some progress in recovering from the dismal performance recorded in the past, but Havas' results still lag a long way behind those of Aegis and it is far too soon to see whether the extensive management changes will bring large and lasting improvements."

Bollore has been attempting to secure representation on the board of Aegis, owner of media agencies Carat and Vizeum and market research network Synovate, since he began buying up shares in the company in 2006. He is the largest single shareholder in the company with a 29.9% stake.

In his latest attempt reported earlier this week, Bollore requested that Havas directors Philippe Germond and Roger Hatchuel be appointed as directors of Aegis.

Shareholders will be asked to vote at the company's annual general meeting on May 23.

They have been asked to vote on the same matter four times in the past, but more than 90% of them have rejected the request every time.

Aegis directors, including chief executive Robert Lerwill, have argued that it is bad corporate governance to have the chairman of a rival on the board, as well as bad for competition.