Interpublic shares rose more than 12 percent today, five times the stock’s normal trading volume, after The Financial Times’ speculation that French rival Publicis Groupe is readying a more than $6 billion-bid for the U.S. holding company.
The combination, which could give rise to potential client conflicts between Procter & Gamble at Publicis and Unilever at IPG, would create the industry’s second-largest holding company, trailing WPP Group.
Speculation about Publicis’s interest in acquiring IPG has surfaced in the past, but the FT’s Alphaville blog contained specific details that appeared to give credence to the latest round of rumors. The FT said Publicis was working on a bid, which has been six months in the planning, that would offer shareholders a cash-and-stock deal valued at $15 a share. The Paris holding company is reported to be working with a number of banks, including Rothschild.
IPG shares had climbed to $10.87 in mid-afternoon trading, with nearly 33 million shares changing hands, after opening at $9.82. Interpublic’s typical average daily volume is 6.9 million shares.
In response, IPG issued a statement: “We are aware of the activity in our stock today. It is our policy not to comment on market rumors or speculation.”
Publicis execs could not immediately be reached for comment.
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