Publicis Drops Hostile Bid for True North

Publicis withdrew its hostile bid for True North Communications Inc. after a federal judge blocked the French advertising company’s effort to prevent True North from acquiring a closely held competitor. Publicis, which owns an 18.5% stake in True North, had planned to acquire an additional 32% through a tender offer of $28 a share. The tender would have given majority control to Publicis, which said the $440 million True North is paying for Bozell, Jacobs, Kenyon & Eckardt Inc. is too much. U.S. District Judge Joan Gottschall in Chicago ruled Tuesday that Publicis couldn’t interfere with a Dec. 30 True North shareholder vote on the Bozell acquisition, in effect ending the tender offer. Paris-based Publicis said it would seek an emergency appeal to overturn the ruling. A hearing was scheduled for Dec. 18, the company said.