Fidelity to block Bollore as takeover speculation surfaces

by Staff, Brand Republic 19-Oct-06, 11:05

LONDON - One of Aegis Group's largest shareholders, Fidelity, is considering blocking Vincent Bollore's bid for two seats on the media and market research firm's board.

News of its opposition comes amid French newspaper reports that Aegis is considering contacting the Takeover Panel about concerns that Bollore is working in concert with another investor, which would take his holding over 30% and trigger a full-blown takeover.

The suggestion is that Bollore is working in concert with Manila-based fund EFL, which holds a 2% stake in Aegis. This stake combined with Bollore's 29.1% would, under UK law, require the Frenchman to make a bid.

"According to our information, British stock market watchdog, the Takeover Panel, could be approached by Aegis on the matter in the coming days," French daily Le Figaro said.

The Times reported this morning that US mutual fund Fidelity, which has an 8.96% stake in Aegis, is understood to have concerns that, as chairman of rival Havas, Bollore's presence on the board would raise issues of conflict of interest.

Bollore called again last month for his representatives, Philippe Germond and Roger Hatchuel, to be given board seats.

Aegis plans an emergency general meeting on the subject shortly. At its June AGM, Aegis called on shareholders to vote against Bollore's candidates.

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