By Julian Lee
THE London-based marketing services company which this week made a $363 million offer to buy out media buyer Harold Mitchell said planning who would succeed the media mogul was a matter of ''high priority''.
As part of the deal to sell the company he founded in 1976, Mr Mitchell, 68, has agreed to stay on for two years to lead the merged entity, which both parties claim will be the largest buyer of online and mainstream advertising in Australia.
No sooner had the board of Mitchell Communication Group yesterday agreed to accept the cash-and-scrip offer from Aegis Media, than the industry was asking the question - who is going to succeed Harold?
Mr Mitchell is widely acknowledged to be the driving force behind the company and is still intimately involved with advertisers as well as media owners such as Rupert Murdoch and Kerry Stokes.
Nick Waters, chief executive of Aegis Media Asia Pacific said: ''There is a lot of ground between now and the 24 months … and it's impossible to read what will happen then. Harold may decide to stay on and he may choose not to. My role will be to plan for any eventualities, and we will need to plan for the scenario that he might move on.''
Mr Waters recognised the strength of Mr Mitchell's relationship with clients, most of them Australian controlled and owned, such as Woolworths, David Jones and ANZ. ''Yes, of course we are making succession planning of Harold a very high priority. We would be foolish not to. But it's not at the stage where I have any information to talk to you about,'' he said.
Asked if there was a succession plan, Mr Mitchell himself said: ''Succession plans will always emerge. Yes, of course [we have a plan] but I am not going to tell you.''
Mr Mitchell said he had agreed to stay on for at least two years but that it might be longer.
Mr Mitchell's son Stuart, who is not bound by any such contractual term, is to take a ''very senior role'' in the company, but so far the only person confirmed in a job is Mr Mitchell senior.
Mr Mitchell said he would not have control of who would succeed him, despite the fact the Mitchell family will be Aegis Media's second-largest shareholder with 5 per cent of stock. ''That would be irresponsible. This is a giant organisation. My role is changing and merging, and there is a wide range of executives to choose from.''
Asked what would happen if he should retire, Mr Mitchell replied: ''Or you mean, should I decide to die. Well, I haven't decided to do either yet.''
Some argue that succession planning at Mitchell's is not as much of a problem as it once was. Barry O'Brien, chief executive of rival media buying company PHD Australia said: ''Mitchell's has got some good people and Aegis have got some good people, and I wouldn't be surprised to see Stuart taking on a role like that.''
Mr Waters said the priority after the deal would be to combine the volumes of all the media buying agencies, and to review the branding of groups.