British advertising firm Aegis Group said today it had received a takeover approach valuing it at around $2.8 billion, sending its shares to near five-year highs.
Aegis, which helps companies with their media strategy and purchases advertising space for them, did not name its suitor or whether the approach was for a bid in cash or shares, only saying that it was at an indicative price of 140 pence a share.
France's Les Echos newspaper said on its website that Publicis was close to making a friendly takeover bid for Aegis and the British firm would hold a board meeting today to review the French advertising giant's offer.
Publicis, the world's fourth largest advertising group and owner of agencies Publicis Worldwide, Saatchi & Saatchi and Leo Burnett, was not immediately available for comment.
Early market speculation on the suitor's identity revolved around French corporate raider Vincent Bollore and with him the French advertising group Havas, where he is the chairman and largest investor, and US-based Omnicom.
Mr Bollore bought a 6 per cent stake in Aegis earlier this year, prompting speculation that Aegis could be merged with Havas.
Analysts said a deal made strategic sense for Omnicom, citing its underweight position in media buying in Europe.
"Omnicom acquisitions need to be earnings-neutral and 140p would just meet that criteria on our numbers," Panmure Gordon & Co analyst Leigh Webb said in a research note.
Another name mentioned included Britain's WPP Plc, but analysts said a bid by WPP and Publicis would face regulatory hurdles.