Aegis Stock Jumps 3% After Entrail-Raker Tips It as Takeover Target

04 February 2002

Aegis Group, owner of the worldwide Carat media planning and buying network, is “highly geared into any cyclical recovery and should play a part in any further consolidation within the sector,” opined entrail-raker ABN Amro. The markets responded in Pavlovian fashion, lifting the value of Aegis stock opvernight by 3%.

Carat, which last week snapped-up the £280 million Hyundai USA media buying business, has been seen as a prime takeover target ever since Havas pulled out of the contest with WPP Group to acquire Tempus [WAMN: 13-Sep-01].

At that time, Aegis chief executive Doug Flynn said any bid would meet with robust resistance: “It [a bid] is going to solve someone else’s problem. We are going to grow faster than advertising conglomerates over the next five years.”

News source: BrandRepublic (UK)