Aegis to splash out after profits drop slows

Advertising buyer and research firm Aegis today raised £190 million from a bond issue to go on a buying spree after reporting a better-than-expected 21.8% drop in pre-tax profits of £149.3 million during recession-hit 2009.

Aegis also finally appointed a new chief executive Jerry Buhlmann, currently boss of ad-buying division Aegis Media, which includes agencies Carat and Isobar.

Buhlmann becomes CEO on 1 May, 18 months after previous boss Robert Lerwill departed during a lengthy power struggle with key shareholder Vincent Bolloré, boss of rival French firm Havas. Aegis chairman Sir John Napier, who has been interim CEO, insisted there is "a very positive relationship" with Bolloré and ruled out renewed merger speculation.

"There are no talks going on," said Napier. "It's one of those love affairs that [only] take place in the newspapers. I haven't even had my hand held, let alone anything else."

Aegis had initially planned a £170 million convertible bond issue but raised around £190 million by 9am when the process closed after what Napier called an "excellent response".

Shares fell 5%, or 6.6p, to 121p, which analysts expected because of the bond issue.