Interpublic takeout price implied at $36 per share, says JPMorgan

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.