Speculation has been mounting for months that Havas was been interested in buying Cordiant, owner of Bates Worldwide and 25% of the Zenith Optimedia Group, especially after the French group raised necessary funds through a convertible bonds issue.
This speculation culminated last weekend in reports that Havas had offered $1bn for Cordiant, which the two companies denied.
However, an article in The Observer this weekend claims that the two companies had been in talks, but that they had drawn up an agreement to halt the discussions and deny that negotiations had been taking place if details were leaked.
The talks are understood to have reached the stage of naming a price. It is also thought that Havas had suggested that Cordiant CEO Michael Bungey leave a potentially merged company.
The larger Havas is believed to be in the driving seat in the talks as Cordiant continues to struggles on the back of a number of key account losses. Bates recently lost several key clients, including the high-profile US Hyundai creative and media work.
Havas is thought to be in the market for an acquisition to bolster its standing in the advertising network rankings, after Paris-based rival Publicis Groupe announced its $3bn takeover of B|Com3 earlier this year.
Havas and Cordiant are expected to return to negotiations by the end of the summer.
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