Vincent Bollore, major shareholder in Aegis, has failed for the fourth time to place two of his men on the board of the media group after shareholders voted unanimously again to reject his proposals.
Bollore, who owns 29% of Aegis via Groupe Bollore, has vowed to continue
pushing for his appointments until he succeeds. On the three previous
occasions, shareholders voted unanimously in favour of an Aegis
management that has aggressively opposed his demands for the rather good
reason that Bollore is the chairman and largest shareholder in French
rival Havas, implying that allowing his nominations on board would
result in a conflict of interest.
The size of Bollore's stake and his persistence in trying to place his
two nominees has triggered speculation that he is manoeuvring for a
merger with Havas without having to go to all the trouble and expense of
launching a full takeover bid.
His failure at the Aegis AGM today was expected, with 95% of non-Groupe
Bollore shareholders rejecting the proposals.
For a fourth consecutive time in the past 12 months, over 90% of
non-Groupe Bollore shareholders overwhelmingly voted down the exact same
resolutions he has presented on previous occasions. In total, 76% of
eligible votes were cast at the meeting.
In the wake of the AGM, Colin Sharman, chairman of Aegis, said: 'The
outcome of today's AGM is not a surprise. Shareholders have seen no
change in circumstances to alter their opposition to board
representation for Groupe Bollore - reflecting the importance they
attach to keeping the Aegis board completely independent of a
competitor. '
Sharman hopes Groupe Bollore will listen to the views of its fellow
shareholders.
At the AGM Aegis management also assured shareholders of strong trading
over the first quarter, with particularly strong momentum in Asia
Pacific and Europe, Middle East and Africa markets and continuing,
impressive organic growth.
First quarter revenue increased 10.8% at constant currencies, and by
4.6% at reported rates, reflecting the impact of adverse currency
movements. Group organic revenue growth, excluding currency movements
and impact of acquisitions, advanced on 2006 and ran at an impressive
8.5% over the period.
Across key businesses, Aegis Media experienced organic revenue growth of
8.4% over the quarter with Asia-Pacific and Europe, Middle East and
Africa leading the way. A buoyant market in China and the record $2.7bn
of net new business won in 2006 underpinned the strong show. Digital
services continue to be the fastest-growing part of Aegis Media.
Synovate, the market research business, delivered organic revenue growth
of 8.7%, with a particularly strong start to the year in the Americas
and Asia-Pacific.
On outlook, Aegis continues to see a healthy outlook for both the
advertising and market research markets. Its reported sterling results
going forward will reflect the impact of the weaker US dollar, the
currency for over a third of group revenue.
The trend in recent years for a greater second half weighting of
operating profit is likely to continue.
Overall the group is confident of delivering another year of industry
out-performance and good underlying progress, underpinned by recent
client wins, its leading position in digital services, and growing
presence in developing economies.
The update pleased Numis analyst Lorna Tilbian, who rates the shares at
'add' with a price target of 160p. She says: 'We remain attracted to the
Aegis investment case, both on fundamentals and to reflect industry
consolidation. Momentum is clearly good, and we see scope to upgrade our
forecasts as we progress through the year.'
Tilbian adds that recent M&A activity in the sector highlights the value
of Isobar, Aegis’ digital agency, while a combination with Havas/Bollore
'remains a strong probability at some stage in the future'.
Mid afternoon, Aegis Group PLC shares were up 2.75p to 148p, giving a
forward PER of 19.2, falling to 17.3 in 2008. The prospective yield is
1.4%.
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Aegis shareholders shun Bollore again
Kam Patel, 25/05/07 15:20
Vincent Bollore, major shareholder in Aegis, has failed for the fourth time to place two of his men on the board of the media group after shareholders voted unanimously again to reject his proposals.
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Bollore, who owns 29% of Aegis via Groupe Bollore, has vowed to continue pushing for his appointments until he succeeds. On the three previous occasions, shareholders voted unanimously in favour of an Aegis management that has aggressively opposed his demands for the rather good reason that Bollore is the chairman and largest shareholder in French rival Havas, implying that allowing his nominations on board would result in a conflict of interest.
The size of Bollore's stake and his persistence in trying to place his two nominees has triggered speculation that he is manoeuvring for a merger with Havas without having to go to all the trouble and expense of launching a full takeover bid.
His failure at the Aegis AGM today was expected, with 95% of non-Groupe Bollore shareholders rejecting the proposals.
For a fourth consecutive time in the past 12 months, over 90% of non-Groupe Bollore shareholders overwhelmingly voted down the exact same resolutions he has presented on previous occasions. In total, 76% of eligible votes were cast at the meeting.
In the wake of the AGM, Colin Sharman, chairman of Aegis, said: 'The outcome of today's AGM is not a surprise. Shareholders have seen no change in circumstances to alter their opposition to board representation for Groupe Bollore - reflecting the importance they attach to keeping the Aegis board completely independent of a competitor. '
Sharman hopes Groupe Bollore will listen to the views of its fellow shareholders.
At the AGM Aegis management also assured shareholders of strong trading over the first quarter, with particularly strong momentum in Asia Pacific and Europe, Middle East and Africa markets and continuing, impressive organic growth.
First quarter revenue increased 10.8% at constant currencies, and by 4.6% at reported rates, reflecting the impact of adverse currency movements. Group organic revenue growth, excluding currency movements and impact of acquisitions, advanced on 2006 and ran at an impressive 8.5% over the period.
Across key businesses, Aegis Media experienced organic revenue growth of 8.4% over the quarter with Asia-Pacific and Europe, Middle East and Africa leading the way. A buoyant market in China and the record $2.7bn of net new business won in 2006 underpinned the strong show. Digital services continue to be the fastest-growing part of Aegis Media.
Synovate, the market research business, delivered organic revenue growth of 8.7%, with a particularly strong start to the year in the Americas and Asia-Pacific.
On outlook, Aegis continues to see a healthy outlook for both the advertising and market research markets. Its reported sterling results going forward will reflect the impact of the weaker US dollar, the currency for over a third of group revenue.
The trend in recent years for a greater second half weighting of operating profit is likely to continue.
Overall the group is confident of delivering another year of industry out-performance and good underlying progress, underpinned by recent client wins, its leading position in digital services, and growing presence in developing economies.
The update pleased Numis analyst Lorna Tilbian, who rates the shares at 'add' with a price target of 160p. She says: 'We remain attracted to the Aegis investment case, both on fundamentals and to reflect industry consolidation. Momentum is clearly good, and we see scope to upgrade our forecasts as we progress through the year.'
Tilbian adds that recent M&A activity in the sector highlights the value of Isobar, Aegis’ digital agency, while a combination with Havas/Bollore 'remains a strong probability at some stage in the future'.
Mid afternoon, Aegis Group PLC shares were up 2.75p to 148p, giving a forward PER of 19.2, falling to 17.3 in 2008. The prospective yield is 1.4%.
Aegis will announce its interims on 6 September.
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