Havas Issue Revives Merger Speculation

French-owned media group Havas has issued a $519m bond offer, giving rise to renewed rumours that it may bid for UK-based rival and Synovate parent Aegis.

The 350m Euro bond will mature in November 2014. Acquisitions seem the likely purpose of the fund-raiser as UBS points out in a research note: 'Havas already had about 1 billion euros of available unused financing facilities at the end of the first half and has no significant refinancing near term'.

Havas Chairman Vincent Bollore owns just under 30% of Aegis and has a long history of interest in the company, including repeated (and repeatedly rebuffed) attempts to get his nominees elected to its Board. Speculation about a takeover grew with the departure of merger sceptic Robert Lerwill from Aegis last November and the appointment of John Napier, but has quietened since the Spring.

Web sites: www.havas.com and www.aegisplc.com .