Aegis shares soar on talks over £500m Synovate sale
Tuesday 07 June 2011
Shares in Aegis Group hit a four-year high yesterday after the company confirmed it was in talks to sell its market research business to Ipsos. The London-based marketing group confirmed that Ipsos, the French company that owns pollsters Ipsos Mori, had made an approach to buy its Synovate business. The deal could be worth £500m, according to analysts. The shares closed up 7 per cent at 151p on the news.
Alex DeGroote of Panmure Gordon said there was "very solid industry logic" to the takeover, because the combination "would form a much bigger pure-play market company".
He continued: "There are other players that might be interested. In this case there could be upside pressure to the £500m estimate."
GFK is believed to be considering a bid, and experts said yesterday's announcement could force the German group to show its hand.
Mr DeGroote speculated that advertising giant WPP could also be interested in a takeover approach, while Neilsen and Publicis have also been linked with a move.
Aegis added yesterday that there could be "no certainty that any agreement will be reached" with Ipsos.
Analysts at Altium Securities said the sale would be a "radical move" for Aegis given that Synovate generated a little over a third of the total group revenues.
However, the analysts added that there were several reasons why asale would make sense. There was "little or no" synergy between the two businesses, which are run separately, they said. It generated a lower margin than the rest of the group and was also "the less well understood part of the group, a factor which we believe may have exerted a drag on its overall valuation".
- 1 Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 4 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 5 The enemy within: People who hear voices in their heads are being encouraged to talk back
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Howard 'Mr Nice' Marks reveals he has inoperable cancer: 'I've had an incredible life'
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...