• by Joe Mandese  @mp_joemandese, December 22, 2005

Expenses related to its takeover talks have cost the Aegis Group nearly $3 million, but that, as well as a slowdown in ad spending expectations in key media markets, has not hurt 2005 results for the British-based media agency and marketing research holding company.

"Better than expected growth in our specialist media businesses," as well as contributions from recent acquisitions offset those negatives, the company said, keeping its results in line with expectations for the first 11 months of 2005. Aegis' media businesses include Carat, Vizeum, Isobar, and Posterscope.

In addition to incremental costs related to unsolicited takeover talks by Publicis Group and a syndicate including WPP Group, Aegis said the rise in its share price sparked by takeover speculation increased its costs related to "share-based incentives."

Despite the slowdown in some media markets, especially in Europe and among traditional media, Aegis said its media operations - particularly online - continue to be a bright spot. "Competition in traditional media planning and buying continues to be intense, but we are benefiting from our investment in specialist media, communications planning and non-traditional activities, including digital," the company said in a financial update to investors.

The company issued even stronger guidance for 2006, and said it would report its "preliminary results" for calendar 2005 on March 7, 2006.