Media buying group Aegis mobilised support from institutional investors yesterday as it stepped up its efforts to block an attempt by French corporate raider Vincent Bolloré to gain seats on its board.
The company said it had the backing of 11 leading investors, accounting for 23% of its shareholder base, and made public a supportive letter signed by five, including Fidelity International and Standard Life.
Mr Bolloré, Aegis's largest shareholder with 29% through his Groupe Bolloré investment vehicle, is making his second attempt to get two of his associates voted onto the Aegis board at an extraordinary general meeting on November 22.
Aegis, which owns the Carat and Vizeum media-buying networks, believes the move would represent a conflict of interest as Mr Bolloré is the chairman and a major shareholder at one of its rivals, the French advertising group Havas.
The investors - Fidelity, Standard Life, Henderson Global Investors, Hermes and Aberdeen Asset Management - said they regretted the move just five months after the same proposals were rejected at the company's annual meeting. "We retain our previous view that the resolutions are not in the interests of the company's shareholders as a whole and should be voted against," they said in their letter.
Aegis's chairman, Lord Sharman, said the unusual public show of support from shareholders reflected "the strength of their feeling on the point of principle involved, as well as their frustration at the time and expense for all parties so soon after the AGM".
A spokesman for Groupe Bolloré said it was keen to hear shareholders' views and would remain a "long-term investor" whatever the outcome of the vote.
Many analysts believe the Frenchman's push for boardroom representation is an opening gambit in a push to acquire the company. The financier cannot add significantly to his stake - acquired since August last year - without crossing the 30% threshold at which he would be obliged under City rules to make a takeover bid.