The Interpublic Group of Companies, Inc.
) recently announced that it would convert all of its outstanding
5 1/4% Series B Cumulative Convertible Perpetual Preferred Stock
("Series B Preferred Stock") into common stock through forced
conversion. The conversion of the outstanding 221,474 shares of
Series B Preferred Stock will be effective from Oct 17, 2013.
On the Forced Conversion Date, each preferred stock holder
will be entitled to receive 77.8966 shares of common stock for
each Series B Preferred Stock, following which shares of Series B
Preferred Stock will cease to exist. Moreover, for the fractional
shares, the holders will be compensated with cash.
Additionally, stockholders as of Oct 1, 2013, will be paid a
dividend of $13.125 per share of Series B Preferred Stock on Oct
15. Also, post the Forced Conversion Date, the Series B Preferred
shareholders are not entitled to receive any dividend
The newly issued common shares by Interpublic will henceforth
be a part the company's basic share count, which might lead to
dilution of its reported basic and diluted earnings per share
(EPS) in fourth-quarter results.
Interpublic offers a wide variety of advertising and marketing
communication services. Moreover, it offers public relations,
meeting and event production, sports and entertainment marketing,
corporate and brand identity as well as strategic marketing
consulting services to customers in more than 100 countries.
Interpublic currently carries a Zacks Rank #3 (Hold). Some
better-placed stocks in the same industry worth considering
Clear Channel Outdoor Holdings Inc.
Huron Consulting Group Inc
). While Clear Channel and WPP both carry a Zacks Rank #2 (Buy),
Huron carries a Zacks Rank #1 (Strong Buy).
CLEAR CHANL OUT (CCO): Free Stock Analysis
HURON CONSLT GP (HURN): Free Stock Analysis
INTERPUBLIC GRP (IPG): Free Stock Analysis
WPP PLC (WPPGY): Free Stock Analysis Report
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