Havas ‘eyeing WPP bid’, The Times reports

According to the newspaper, Havas is understood to have held talks about WPP, the owner of PR agency Burson. One source suggested Havas may look to buy WPP’s media agency, WPP Media, while another suggested it could “build a sizeable stake and seek a board seat”.

Meanwhile, The Times reports “senior City sources” indicating that private equity firms Apollo and KKR had run the rule over assets of the group. However, the newspaper also says sources have played down the likelihood of either making bids for the troubled holding company.

Apollo looked at the business last year, according to The Times, although a spokesperson told PRWeek today: “We are not in discussion or considering a bid for WPP.” KKR - which last year acquired corporate and financial comms behemoth FGS Global from WPP - declined to comment.

It follows a difficult period of trading for WPP, whose stock price fell 16% to its lowest level in 27 years in late October after the group missed forecasts again at its latest quarterly results.

CEO Cindy Rose labelled WPP’s recent performance “unacceptable” and said “we are taking action to address this”. WPP recently appointed management consulting firm McKinsey to advise on its much-anticipated strategy review.

On Friday, Campaign reported that WPP's new chief executive, Cindy Rose, and chair Philip Jansen combined to buy back a total of 100,000 shares for about £287,000. The move appears to be designed to lift investor sentiment with regard to the company’s embattled stock. Corporate governance rules in the UK prohibit such buybacks if a public company is in formal merger or takeover discussions. 

A spokesperson for Havas told PRWeek: “Per group policy, we do not comment on market rumours.” 

PRWeek has also contacted WPP for comment.