A merger of Omnicom Group Inc, the No.1 U.S. advertising company, and French rival Publicis Groupe SA has hit a roadblock following disagreements over terms of the deal, the Wall Street Journal reported Friday, citing people with knowledge of the situation. Last July, both companies announced the proposed $35 billion merger that would overtake WPP Plc as the world's largest advertising company.The companies have essentially not agreed on who will be the legal acquirer, which is delaying crucial paperwork with the U.S. Securities and Exchange Commission, according to the report.Despite both companies owning 50 percent of the new entity, technically one has to acquire the other for accounting reasons.Omnicom and Publicis have stopped meetings of about 70 integration committees, where they present their networks, teams, organization, the Journal said, citing sources. (link.reuters.com/nax78v)
Omnicom Group Inc. (Omnicom) is a holding company, providing professional services to clients through multiple agencies. Shares of OMC fell by 2.85% or $-1.99/share to $67.91. In the past year, the shares have traded as low as $59.03 and as high as $76.87. On average, 1640690 shares of OMC exchange hands on a given day and today's volume is recorded at 3823117.
Shares of WPPGY fell by 0.94% or $-1.01/share to $105.95. In the past year, the shares have traded as low as $81.17 and as high as $115.40. On average, 82730 shares of WPPGY exchange hands on a given day and today's volume is recorded at 61214.
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