JPMorgan estimates the implied takeout price of Interpublic Group (IPG) to be paid by Omnicom (OMC), per the Wall Street Journal’s reporting, is $36 per share. The merger would effectively combine the number three and four players among the “Big-4” advertising holding companies, creating a global leader across a range of marketing services, the analyst tells investors in a research note. For Omnicom, the firm’s initial reaction is positive, saying the deal is likely to carry long-term revenue and cost synergies, even while some challenges around execution and integration should be considered. For Interpublic, it believes the possible deal carries a high-teens to high-twenties premium to the current share price, and comes amid a challenging period for the company.
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Read More on IPG:
- Omnicom in advanced talks to acquire Interpublic Group, WSJ reports
- Interpublic Group sells Huge tp AEA Investors
- Interpublic Group acquires Intelligence Node, terms not disclosed
- Interpublic Group unit Momentum Worldwide launches Nuance Matters
- Interpublic Group rumor highlighted in Betaville alert
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
