Havas shares rally after WorldCom blow

PARIS - Shares in Havas showed signs of rallying this morning, after being hit hard by the news that one of its biggest clients, WorldCom, was on the brink of collapse over $3.8bn (£2.5bn) fraudulent profit claims, which has left markets around the world reeling.

Havas saw up to 12% of its share price wiped off yesterday, before closing at €5.83, 4.4% down from the previous day's closing price.

This morning, Havas stock, listed in Paris, is stiil trading at €5.83, although it did rise by up to 1.2% before falling back.

Some speculation suggested that Havas was owed money by telecommunications giant WorldCom. Havas' Euro RSCG MVBMS & Partners is WorldCom's agency of record. However, in reports, Havas has said that payments from WorldCom are up to date.

WorldCom also uses the Interpublic Group of Companies-owned ad agency Deutsch, New York for consumer advertising for its long-distance telecom brand MCI.

WorldCom revealed on Monday night that it had overstated its profits to the tune of $3.8bn. It now faces charges from the Securities Exchange Commission and could see its efforts to secure $5bn in new financing scuppered, thus forcing it into bankruptcy, according to analysts. The company's auditor was Andersen.

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