The France-based global agency Havas is reportedly in early talks about a deal with the UK’s WPP.
According to The Times of London, the French rival has expressed an interest at WPP, once the world’s largest advertising network, and its assets.
The Times quoted senior City sources as saying private equity firms Apollo and KKR had also run a ruler over WPP’s assets.
WPP, facing client losses and fading new business, has a new CEO, Cindy Rose, reviewing the business.
She described as “unacceptable“ September quarter revenue falling 3.5% to £3.259 billion on a like-for-like basis.
And the group has downgraded its full year guidance, now expecting like-for-like growth in revenue less pass-through costs of -5.5% to -6%, a deterioration from -3% to -5%.
WPP’s market capitalisation is about £3 billion, down from £24 billion in 2017.
The Times said hedge funds have taken an 8.5% short position in WPP’s shares, expecting more falls in the advertising group’s shares.
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