Havas, now trading independently of Vivendi, is the latest potential suitor touted for struggling WPP: somewhat unlikely as its €1.45bn valuation is still barely half of WPP’s, trading at a 20-year low.
Havas has also been linked with Dentsu’s international business, currently in the shop window. Some have speculated that Havas is really interested in WPP Media, the former GroupM, as it seeks to build out its media capability. It recently struck a deal with big US media independent Horizon. But WPP Media, despite its travails, still accounts for a large part of WPP’s profit and a sale would leave WPP with just two rather top-heavy creative outfits, VML and Ogilvy. Financial PR and research have already been sold off.
One shouldn’t underestimate Havas or the ambitions of the Bolloré clan. Yannick is CEO of Havas (and chairman of the Vivendi supervisory board.) Brother Cyrille chairs family business Bolloré Group while the original empire builder father Vincent is still around. From their Parisian terrace they can see Publicis, overlooking the Arc de Triomphe.
One should never underestimate the ambition and rivalry of such French business dynasties. It will annoy all of the them that ancient French rival Publicis is carrying all before it, now the world’s biggest ad holding group by valuation.
But a bid for WPP?
That’s doing it a hard way.
