Numerous problems had beset the "merger of equals," including obtaining tax and other regulatory approvals, differences over which executives would take leading positions - particularly the job of CFO - and which company would be listed as the legal acquirer of the other.
No termination fees are being paid by either side.
The ending of the merger leaves WPP (WPPGF) as the world's largest advertising company.
The "merger of equals" had been challenged by difficulties in getting tax and other regulatory approvals, as well as differences over which executives would fill top roles and which company would be listed as the legal acquirer of the other (earlier).
Personal battles over position and power are threatening the planned merger of equals by ad firms Omnicom (OMC) and Publicis (PUBGY), as sources say frayed personal relationships - in addition to legal and tax issues in Europe - are delaying the completion of the deal, first announced last summer.
Among various conflicts, the two sides haven't yet agreed on which company will be the legal acquirer of the other, and they disagree over who will fill the CFO position and other senior jobs.
In recent days, the companies have been sending starkly different messages about the status of the merger - to the extent that the CEO of rival WPP (WPPGY) says the deal is doomed.
A merger to create the world's largest advertising company is essentially done between Omnicom (OMC) and Publicis Groupe (PUBGY.OB), according to various reports. The combined $30B company would be a merger of equals, however, with no premium to current share prices -- though size should allow it to negotiate better ad rates and retain clients more easily.
Publicis is not in talks about buying U.S. rival Interpublic (IPG), nor has it "commissioned any bank to undertake any such discussions," the French advertising agency says. Publicis was responding to an FT report from Friday that it's considering a $6B+ bid for Interpublic, speculation that helped the latter's shares close 13.3% higher.
Publicis Groupe and its subsidiaries are engaged in the advertising and communications businesses. Co. provides advertising and media consulting services to corporations around the world. Co. also has specialized agencies organized as networks consisting of the following: Publicis Consultants,...More