Delaware Court Rules Against Publicis

A Delaware court granted an emergency restraining order barring French advertising company Publicis from trying to gain control of True North Communications Inc. A chancery court spokeswoman said Chancellor William Chandler granted the motion after a hearing early Tuesday before the court officially opened. Chicago-based True North sought the order against Publicis, which has tried to block True North’s proposed merger with Bozell, Jacobs, Kenyon & Eckhardt Inc. and has launched a bid for True North stock. The order barred Publicis from proceeding with a bid. A further hearing on the matter was set for Monday. True North shareholders are scheduled to vote Dec. 30 on its planned $440-million acquisition of Bozell. Publicis, which owns 18.5% of True North, opposed the deal and had sued to block the shareholder vote in Chicago. Earlier, Publicis began a cash tender offer of $28 a share for True North’s 9,619,904 shares of common stock. Publicis aims to increase its holdings in True North to 50.1% through the offer, which expires Jan. 15, unless extended. True North shares rose 50 cents to close at $25.50 on the NYSE.