Publicis/Omnicom split could lead to agency price war
The collapse of the Publicis Groupe and Omnicom merger could trigger an agency price war, according to financial analysts, who believe the deal never made financial sense.
Maurice Levy and John Wren: pulled plug on merger of Publicis Groupe and Omnicom
Ian Whittaker, the head of European media research at Liberum Capital, said he believed there was a chance of "some kind of price war" as Omnicom looks to cut fees to bring in new clients.
Speculation has linked the merger with Vodafone moving its media account to WPP, but John Wren, the chief executive of Omnicom, denied the group had lost any clients or staff.
Lorna Tilbian, the executive director and head of media at Numis Securities, said: "Combining Publicis with Omnicom was going to create such a giant that the magic double-digit growth – which is what investors require – would have been pretty hard to achieve."
The lack of investor support for the deal was demonstrated by share prices remaining relatively unaffected by the news, which ended ten months of negotiations.
This article was first published on campaignlive.co.uk
Latest jobs Jobs web feed
- BTL AGENCY ACCOUNT HANDLERS - integrated, shopper, sales promotion, retail, digital Judi Patton £22K-£55K, London (Central), London (Greater) / London (East), London (Greater) / London (North), London (Gr...
- SENIOR ADVERTISING MANAGER (MATERNITY COVER) notonthehighstreet.com Competitive , Richmond
- Corporate Senior Executive - Volunteer Fundraising (Home Based) Cancer Research UK £25000 - £29000 per annum + Car + Excellent benefits, Nationwide
- Corporate Executive - Volunteer Fundraising (Home Based) Cancer Research UK £20000 - £24000 per annum + Car + Excellent benefits, Nationwide
- ACCOUNT DIRECTORS - Integrated/ATL/TTL/BTL/SP/Shopper/Retail - London - up to £50k Judi Patton £40k-£50k plus excellent benefits, London (Central), London (Greater)
- Digital Delivery Manager Cancer Research UK £35000 per annum + excellent benefits, London