The withdrawal leaves the way open for WPP Group and its 555p-a-share bid. However, it too has been hit hard by the uncertainty in the market and could well withdraw its offer.
WPP CEO Sir Martin Sorrell said, "Given the takeover code, I cannot make any comment at this time."
Havas said that market conditions have deteriorated significantly since it made its initial offer on July 19, as evinced by the postponement of a number of advertising and media campaigns.
Havas pointed to the current uncertainty surrounding the industry and the long-term economic outlook, which has also been severely affected. It said the situation has been exacerbated by the tragic events of the last 10 days in New York and Washington. This, it said, contributed to a further lack of future visibility, particularly in the American market, but also in other markets.
In such a climate, Havas does not consider that it is in its shareholders' interests to submit a higher offer.
Alain de Pouzilhac, chairman and CEO of Havas, said, "We must not go through with this bid, now that a recession is more and more likely. It would be unwise. We have a duty both to our shareholders and to our employees who have placed their confidence in us. To make a higher bid would be unreasonable in an environment which is getting worse by the day and which has been hit even harder by the recent terrible events in America."
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