Evening Standard (London): Publicis in pole position as Aegis bid war hots up

AEGIS was on the move today amid media reports swirling over the Channel that Paris-based Publicis will table a formal bid.

Britain's largest independent advertising business told the markets a week ago it had received a 140p-a-share approach, valuing it at Pounds 1.56 billion, without revealing the identity of the suitor.

The bidder turned out to be Publicis, the Evening Standard revealed, the world's fourth-largest advertising group and owner of Saatchi Saatchi.

Talks are ongoing between Aegis's London financial advisers Greenhill Co and Publicis's bankers at UBS. Both sides have signed a "standstill agreement", which prevents the French from launching a hostile bid.

A Publicis executive today insisted that chairman Maurice Levy has yet to meet Aegis's British chief executive Robert Lerwill as the Frenchman has been in New York on business.

The prospect of a bidding war heated up as French corporate raider Vincent Bollore admitted he had raised his stake in Aegis, for the second time in a week, to almost 9%. Talk refuses to die down that French ad agency Havas, where Bollore has built a 22% stake and ousted the chief executive, might also be in the running for Aegis.

Aegis shares added 1p to 1411/2p.

The first nine months of the year have been the busiest for City corporate financiers in five years. The final quarter shows every sign of carrying on at the same pace - all good news for forthcoming annual bonuses - as Britain's most valuable mobile phones operator, Vodafone, signalled it was on the lookout for further European acquisitions.

Vodafone chief executive Arun Sarin said today during a visit to the Czech Republic that he may bid for Turkey's Telsim, which has a market value of about $2.8 billion (Pounds 1.59 billion). Vodafone, off 1/4p to 1471/4p, is among 10 firms ready to bid for Telsim by a 5 December deadline.

A year of heated takeover activity generally is helping Europe's largest quoted venture capital firm 3i, up 51/2p to 794p, one of the best performers among the big stocks.

The buyout specialist delivered a positive trading update yesterday about prospects for healthy returns on its array of investments.

Merrill Lynch analyst Philip Middleton has upped his price target to 990p.

The FTSE 100 index of blue-chip shares was ahead by just 0.1 point to 5478.3 after a morning high of 5506.1.

Among London's new full house of online gaming stocks, the atmosphere has fallen flat. Party-Gaming, which warned on slowing industry growth earlier this month - barely six weeks after coming to market - was the index's biggest faller today. The internet poker operator lost another Pounds 90 million from its market value, down 23/4p to a record low 851/4p, against a 116p float price in June.

More than Pounds 3.6 billion has now been wiped off its value since the shares peaked at 176p shortly after listing.

Blackjack specialist 888.com was dealt a bum hand on just its second day of trading. Having launched at 175p - the bottom end of a pricing range arranged by HSBC's financiers - it closed 5p lower yesterday and was marked down another 31/4p to 1663/4p today.

Miller Lite-to-Peroni brewer SABMiller frothed up 24p to 1112p after a positive note from brokers at Deutsche Bank who raised their target to 1250p.

The bankers down at London Wall are fizzing with excitement about SABMiller's recent buy of Colombia's Bavarian Brewery.

Brokers at UBS have raised their sights for Centrica, up 23/4p to 2461 4p, from 290p to 305p. Talk refuses to die down that the British Gas owner could be on the receiving end of a takeover bid from Russia's Gazprom or Gaz de France.

National Grid retreated 3p to 5331/2p as the nation's power transmission company said its underlying operating profit at the half-year mark is expected to be in line with last year. Corporate activity continues apace among the smaller companies.

Home shopping group Flying Brands has snapped up Garden Bird Supplies - which supplies bird food and feeders - for Pounds 4.3 million. The deal lets Flying swoop in on the fastgrowing grey market. The shares fluttered up 41/2p to 1931/2p.