Omnicom Group Inc
) recently announced that it has modified the conversion rate of
its Zero Coupon Zero Yield Convertible Notes due 2032. The
company's wholly-owned direct finance subsidiary, Omnicom Capital
Inc., declared that with effect from Sep 24, 2013, the new
conversion rate is 18.249 shares of the parent company's common
stock per $1,000 principal amount of Notes. Formerly, the
conversion rate was 18.18 shares of Omnicom per $1,000 principal
amount of Notes.
A few months back, the company had announced that the notes
due 2032 will have contingent interest for the six-month period
beginning Aug 1, 2013. The Contingent cash interest is payable on
Oct 31, 2013 and Jan 31, 2014 at the rate of $2.81 per $1,000
principal amount of Notes. The record dates of the notes are Oct
15, 2013 and Jan 15, 2014, respectively.
Omnicom has been in the limelight for quite sometime.
Yesterday, it announced a merger with InComm Brodeur for an
undisclosed amount. The target firm will merge with Omnicom and
will be renamed immediately as Ketchum. This 'market-extension
merger' is expected to benefit both the companies. The move is a
strategic fit, as it will extend the reach of Ketchum - a
division of Omnicom - to the South Korean market ahead of the
Moreover, a few months back, Omnicom and
Publicis Groupe SA
) signed a definitive agreement to merge together to create
Publicis Omnicom Group - arguably the world's biggest
communications, advertising, marketing and digital services
company. With combined 2012 revenues of $22.7 billion and an
equity market capitalization of approximately $35.1 billion, the
transaction is a merger of equals and is expected to close in the
fourth quarter of 2013 or the first quarter of 2014.
Omnicom is an advertising, marketing and corporate
communications bellwether. The company has a strong track record
of winning new clients and receiving additional deals from the
existing ones. The company's business mix is well-diversified
geographically and benefits largely from the growing markets. In
addition, the company's efforts to control expenses and its
global reputation are commendable.
Omnicom currently has a Zacks Rank #4 (Sell). Better-placed
stocks in the same sector worth considering include
MDC Partners Inc
). While WPP carries a Zacks Rank #2 (Buy), MDC Partners has a
Zacks Rank #1 (Strong Buy).
MDC PTNRS INC (MDCA): Free Stock Analysis
OMNICOM GRP (OMC): Free Stock Analysis Report
PUBLICIS GP-ADR (PUBGY): Get Free Report
WPP PLC (WPPGY): Free Stock Analysis Report
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