Publicis buy-back ends Dentsu partnership Publicis has bought back 18m of its own shares from Dentsu, bringing an end to a nine-year partnership between the French and Japanese advertising groups that analysts say has yielded little value. The companies had been partners since the Japanese agency - the country's largest marketing services group by revenues - teamed up with Elisabeth Badinter, a member of the founding family and the biggest shareholder in Publicis, to act in concert. The buy-back strengthens Ms Badinter's hold over Publicis, the world's third-largest marketing services group. The daughter of the founder now owns 11 per cent of the shares and 20 per cent of the voting rights. She will play a key role in appointing a successor to Maurice Lévy, the Publicis chief executive who was due to retire last year but was asked to stay on to see the company through the global economic downturn. Mr Lévy said the relationship with Dentsu had been "amicable and exemplary" and that he would carry on the two joint ventures with the Japanese firm, Beacon Communications and Dentsu Razorfish - in which Publicis owns 66 per cent and 19.35 per cent respectively. The sale leaves the Japanese group with more cash to spend on other deals outside Japan, which still provides the bulk of its sales. It wants to diversify internationally and has bought US agencies in recent years. After the lack of success in its Publicis relationship it is also perceived as weak in Europe and may seek deals there, notably in the UK. Dentsu said it would book an extraordinary gain of Y2.1bn ($27m) in its consolidated accounts in the current financial year to March as a result of the share sale. Its president and chairman will resign from Publicis" supervisory board. Management of two Tokyo-based ventures established by the companies, Beacon Communications and Dentsu Razorfish, will not be affected by the end of the parent groups" alliance. "The close commercial relationship that Dentsu has built with Publicis over a period of approximately 10 years will continue into the future, and the Company will proactively consider all opportunities for future collaboration," Dentsu said. The ending of the Publicis partnership had been predicted for more than a year after Dentsu sold down a portion of its stake in 2010. Mr Lévy has also stated previously that he needed to preserve funds in case Dentsu decided to sell its stake in Publicis. The partnership agreements were due to expire in July if not renewed. Publicis bought the 9.1 per cent stake from Dentsu at 35.80 euros per share, a 13 per cent discount to Thursday's closing price. The Japanese group will keep a 2.1 per cent stake. Publicis cancelled 10.8m of the shares, the maximum allowed under French law, which will have a positive impact on diluted earnings per share of about 6 per cent this year. Publicis shares, which have risen by about a third in the past six months, rose another 2 per cent to €42.21 in early Paris trading on Friday. Additional reporting by Jonathan Soble in Tokyo