Aegis CEO Robert Lerwill steps down

28 November 2008

The chief executive of one of the largest buyers of ad space in the world, Aegis Group PLC,  has stepped down after a situation that was reported to be a falling out with the company's board.

In a statement, Aegis said that CEO Robert Lerwill will leave the company within the next few days. Reports quoted unnamed sources as saying that he was isolated on account of differences with the company's board over his leadership of the company, without shedding more light on the differences. 

Aegis spokeswoman Charlotte Elston also declined to comment on the reasons for Lerwill's departure.

Presently, company chairman John Napier will have the reigns of the London-based marketing communications company. Aegis buys about £9 billion ($14 billion) worth of ad space annually for advertisers, making it a dominant player in the media industry.

Aegis shares jumped 19 per cent to 59 pence after news of Lerwill's departure came, with investors betting that Napier would be more receptive to selling all or part of the business. 

Speculation in the media suggested that one possible option would be a merger with Havas SA, a Paris-based advertising company in which the French industrialist Vincent Bolloré has the largest shareholding, and is also the chairman. Bolloré owns 29.85 per cent of Aegis, as per filings, and has been an advocate of seeing both companies working together. Lerwill was opposed to this proposed union, choosing to consider Havas as a competitor. Another possibility suggested is the sale of Aegis's market research division, Synovate.