Aegis in talks over sale of research arm
AEGIS is involved in “early stage” talks with Ipsos Mori over the sale of its Synovate market research business, according to people close to the matter.
Sources told City A.M. “very preliminary” discussions had taken place but could not confirm when they began. Aegis is expected to issue a statement to the London Stock Exchange this morning confirming the talks.
Aegis chief executive Jerry Buhlmann has laid out plans to continue running Synovate and advertising agency Aegis Media as distinct entities for the foreseeable future.
But it is understood the firm would consider serious offers for the market research business, which could fetch up to £500m.
UBS is advising Ipsos Mori on any potential bid while Greenhill is acting as an adviser for Aegis.
Attention will now turn to French billionaire Vincent Bolloré, who owns 26.5 per cent of Aegis in addition to 33 per cent of advertising group Havas, which he chairs.
He has been linked to a full takeover of Aegis in the past, and could find it easier to launch a bid for a slimmer group that had divested Synovate.
WPP was interested in taking control of Synovate in 2005 but is unlikely to mount a bid after buying rival TNS. Publicis is seen as a possible rival bidder.
Last month Aegis posted organic revenue growth of 9.1 per cent for the first-quarter, helped by strong performances in Asia Pacific and North America. It said the recovery in ad spending would continue.
It confirmed its 2011 target of growing organic revenue by at least the 5.8 per cent seen in 2010.