Havas CEO: Merger With Vivendi Could Be Mutually Beneficial
November 18 2016 - 8:33AM
Dow Jones News
By Nick Kostov
BARCELONA--Havas SA (HAV.FR) Chief Executive Yannick Bollore
said Friday he could see mutual benefits from a merger with Vivendi
SA (VIVEF), which is chaired by his father Vincent Bollore.
"I totally see what a company like Havas could bring to a
company like Vivendi and I totally see the benefits for Havas to be
able to be in a bigger group and to develop long term," he said at
a Morgan Stanley conference.
Asked whether he would be working for Havas or Vivendi when he
returns to the conference in coming years, he said, "That I don't
know."
French tycoon Vincent Bollore owns around 60% of Havas as well
as a large stake in Vivendi through a family-controlled group. In
the past two years, he has fostered closer cooperation between
Vivendi's units in a bid to create an integrated media group with a
focus on southern Europe.
Yannick Bollore, who joined Vivendi's board in May, stressed
that no formal talks are taking place between the two companies. He
said any merger would need to be based on development rather than a
plan to cut costs.
"We are evolving in the same sectors, we are very focused on big
data, big content, innovation," he said.
Any tie-up could raise conflict-of-interest issues given
Vivendi's ownership of media assets like Canal Plus. Havas earns a
large percentage of its revenue from buying advertising space on TV
and radio, in print and online.
Yannick Bollore described the conflict as "marginal" because
Vivendi represents 0.5% of Havas's revenue and Havas's clients
account for 0.9% of Vivendi's revenue. He said the conflict already
exists because the two companies share a common shareholder and an
agreement is in place to keep the media buying arm separate from
the unit that owns media.
Write to Nick Kostov at nick.kostov@wsj.com
(END) Dow Jones Newswires
November 18, 2016 09:18 ET (14:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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