Havas plans second global network

Havas Advertising, the French group which owns the EURO RSCG network and WCRS in London, is in talks about merging with an “Anglo-American” agency to create a second international network. Sources believe it is keenly interested in doing a deal with a UK-based agency with a substantial US network.

The company’s chief financial officer Alain Camon says the aim of the merger is to give Havas Advertising the clout to take on the big three groups Omnicom, IPG and WPP. It is holding talks with several “second-tier” groups, believed to include DMB&B, Grey, Leo Burnett, Bates Worldwide and Saatchi & Saatchi. The aim is to move Havas Advertising from the eighth-ranked worldwide ad company to fifth.

The media interests of Havas and the partner would be merged, which leaves in question the future of the Mediapolis joint-venture between Havas-owned EURO RSCG and WCRS and Young & Rubicam. It has been suggested Aegis could emerge as a media partner.

A merger would be financed through a share swap. Havas Advertising is 38 per cent-owned by Havas Group, with six per cent owned by banks and the rest floated on the Paris stock market. Camon says: “It would be a share for share transaction. Now Havas has 38 per cent. Tomorrow it would have 15 to 20 per cent of a new group double the size.”

The news broke on Monday, after utilities conglomerate Compagnie Générale des Eaux announced plans to take over Havas, in which it has a 30 per cent share.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here