Omnicom shares jump on merger news
Omnicom shares opened up over seven per cent today on news of its planned $35bn merger with fellow advertising giant Publicis. The Nasdaq-listed company saw its share price surpass $70 and hovered around that point.
Following the release of its earnings data on 18 July, a number of analysts upped their predictions for Omnicom, with Barclays Capital revising its share price target up to $69 from $63, Evercore partners to $69 from $66, and Macquarie to $72 with an “outperform” rating.
Speaking on a conference call earlier today, chief executive John Wren said he did not expect the new company to have to make major disposals, with expected revenue losses thought to be around one per cent rather than the usual eight to ten per cent.
Both he and Publicis chief executive Maurice Levy said that they had spoken to key clients and do not expect any major defections.