• Reuters, Monday, December 8, 2008 9:15 AM

WPP chief Martin Sorrell says it's just a matter of time before French financier Vincent Bolloré merges France's Havas and England's Aegis. Bolloré is a major shareholder in both advertising companies. The recent departure of Aegis's chief executive, Robert Lerwill, plus the depressed value of Aegis shares suggest the merger will come sooner rather than later.

Analysts say merging Aegis and Havas makes sense now, because scale matters during an economic downturn. They also warn that a prolonged corporate standoff could hamper any integration.

Sorrell says the question is when Bolloré will scoop up Aegis. "He has time and money. He could snap up Aegis today if he decided to," Sorrell says. Analyst Bruno Hareng says that with valuations down about 55% in the past 12 months, Aegis and ad agency peers were "value stocks," but Bolloré may want to wait for the stock market to reach a floor -- which will likely happen after April 2009. But Deutsche Bank says the time is ripe now. Bolloré, who owns 29.9% of Aegis and 32.9% of Havas, has made five failed attempts to win two seats on the Aegis board.

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