Boston, MA 05/15/2014 (wallstreetpr) – Omnicom Group Inc. (NYSE:OMC) is trending in the news recently owing to an abysmal call off in the $35 billion merger between the advertising giants OMC and PUBGY. Problems in acquiring regulatory and taxation approvals and encounters over the division of power and position are the primary reasons cited that resulted in this deal reaching its demise, all too early!
Sources reveal that if this deal had rationally and potentially worked out, a prominent ad holding company (and, in fact, the world’s largest in terms of gross revenue), would have come into the limelight! However, since neither side could decide, as to which party would evolve as the ‘acquirer’ in this equity ownership merger, paperwork used to get delayed!
Additionally, regulatory approvals across various territories, viz. China, catalyzed the damage in the relations between the two ad agencies. This sudden call off is deemed to put pressure on the septuagenarian CEO, Maurice Levy, in taking care of the purported succession issue of the Publicis Group.
Omnicom Group Inc. (NYSE:OMC) last released the details of the quarterly earnings on April 22, 2014. The company earned $0.80 per share and has amassed revenues worth $3.50 billion in Q1-2014. The YoY EPS last year after Q1 stood at $0.76; OMC’s revenues surged up by 3.0%, since Q1-2013. In the remaining quarters, in 2014, it expects to post EPS of $4.10!
Omnicom Group Inc. (NYSE:OMC) has fared through thick and thin, finally trending bullish these days. It has fluttered above the benchmark of $68.96 – the 200 days’ moving average, on May 13, 2014. OMC has seen a low point reaching $59.70 per share and a high point wherein it had reached $76.87, over the past 52 weeks. Though it witnessed a small dip today, it seems likely that the shares shall fare better in the forthcoming days.
Despite positive sentiments echoed by the Omnicom Group Inc. (NYSE:OMC) management team regarding its robust plans for the upcoming quarters, the stakeholders will certainly be in a fix as to ‘Sell’ or ‘Hold’ their shares after the mega-merger eventually fizzled out!
