The Takeover Panel has ruled that Bollore, the French businessman who owns almost 25% of Aegis Group, is free to make a separate bid for the company, meaning that the uncertainty for Aegis is not over.
In a statement put out at 11.10am, WPP said: "An indicative proposal was submitted to the board of Aegis on 16 November 2005 by WPP and affiliated funds of Hellman & Friedman. The proposal outlined alternative all-cash offers, one by WPP and H&F, and one by WPP, H&F and, possibly, one other party. WPP has since been informed that the board of Aegis does not wish to pursue either alternative. Accordingly, WPP announces that it has no intention to make an offer for Aegis."
In response to WPP's move Robert Lerwill, the chief executive of Aegis, said it was no surprise.
"Today's announcement was not a surprise, given that WPP and Hellman & Friedman had not made a credible proposal to the board. Aegis's strategy is clear and successful.
"We continue to develop our leading media and research businesses, investing in profitable and high potential markets and services. The valuable positions we have created will allow us to benefit well from the market trends we have anticipated. We intend to continue delivering the results of that strategy."
Shares in Aegis had already began to fall as rumour of the outcome started to spread yesterday afternoon. Following the announcement this morning, they were trading at 118p, a fall of 3p on yesterday's close.
While analysts have long tipped further consolidation in the media industry, it was not until August this year that Aegis became the subject of intense bid scrutiny, when Bollore began buying stock in the company.
This lead to speculation of a potential merger between Havas and Aegis. But in September, it was revealed that rival French advertising holding company Publicis Groupe had made a €1.56bn bid for Aegis.
By the the beginning of October, it was revealed that WPP, headed by chief executive Sir Martin Sorrell, and its private equity partner Hellman & Friedman had also asked for a look at Aegis' books.
By October 17, Publicis had withdrawn its bid over concerns it would burden the company with too much debt. The issue of Bollore's growing stake was also thought to be an issue.
At the same as having two declared suitors, Bollore has continued to buy up stock in Aegis, now owning almost 25% of the company and claiming his place as its biggest shareholder.
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