Yannick Bolloré has quickly moved to deny Havas is in discussions to buy a minority stake in embattled and much larger rival, WPP.
Over the weekend, a report emerged from the British newspaper, The Times, that said Havas was eyeing a stake in the business, amid interest from other investors including
Reports from the US added fuel to the rumours, with a senior advertising executive telling the US advertising title Adweek both parties were in “very serious” discussions.
On the back of this speculation, Bolloré sent an internal email to colleagues to put an end to the rumours.
“It’s our policy not to comment on market rumours, however, given the recent press coverage amplifying these rumours and the questions we’ve received from colleagues and clients, we want to clarify that we are not in discussions with WPP,” he wrote.
“Havas has a strategy of bolt-on and targeted acquisitions that contributes to our strong momentum, alongside strategic partnerships. While we could consider a larger acquisition aligned with our strategy, as stated during our Q3 earnings announcement a few weeks ago, there are currently no ongoing discussions of that nature.
“Undistracted by rumours and noise, we remain focused on accelerating the deployment of our Converged.AI strategy, driving group-wide AI adoption, and delivering excellence for our clients and prospects.”
B&T understands that Havas Australia employees were not aware of acquisition talks when news broke over the weekend.
WPP has been in the spotlight after its share price slumped to £296.30 in October — its lowest level since 1998.
Its share price has since rallied to £3.13, particularly after speculation that Havas and private equity funds were interested in buying stakes in the business.
WPP CEO Cindy Rose recently labelled the holdco’s performance as ‘unacceptable’—although it is performing admirably in Australia—and has brought in the consultants McKinsey & Company to help develop a strategy to turn the group around.
