THE chairman of the media-buying firm Aegis is lining up investment bankers to carry out a strategic review of the business that could see it spin off its market-research arm Synovate or forge closer ties with Vincent Bolloré, its largest shareholder.

John Napier, who ousted chief executive Robert Lerwill in November, has asked Merrill Lynch to find the best operating structure for Aegis. However, the investment bank, which has close links with Napier, has yet to be formally mandated for the task.

Lerwill, who was at the helm for almost four years, had resisted the break-up of the company through the sale of Synovate. Nor did he welcome attempts by Bolloré, chairman of French advertising group Havas, to appoint his own directors to the Aegis board. The Frenchman owns almost 30% of Aegis and is regularly tipped to launch a takeover. He has long said he would like the two firms to cooperate more.

Napier, who is also chairman of the insurer Royal & Sun Alliance, has moved swiftly to stamp his authority on Aegis.

Just before Christmas he replaced Hoare Govett with JP Morgan Cazenove as its broker. Merrill Lynch advised on the sale of water company Kelda, where Napier was chairman.

Weak advertising has driven down the valuation of media companies but market-research businesses are supposed to be more resilient than most in a downturn. WPP last year broke up a merger of Taylor Nelson Sofres with GfK to buy TNS for just over £1 billion.

However, Synovate has come unstuck recently in America, where customers include carmakers. Aegis, which has a market value of £890m, warned in the summer that demand from clients in Britain, Spain and America was softening. Its shares fell 31% last year but picked up 28% in the past month on hopes of corporate activity.

Aegis declined to comment.

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