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| Mark Penn |
Stagwell Group, a holding company formed by Mark Penn in 2015, has proposed merging with MDC Partners to create a $2B ad/PR combine.
Penn, who chairs and owns a 30 percent MDC stake, said a deal would result in $35M in cost synergies and offer "best-in-class combination of insights, creative, digital and performance."
Stagwell's $4.25 per-share offer represents a 263 percent premium to MDC's June 24 closing stock price of $1.17
MDC has formed a special committee of the board to evaluate Stagwell's officer. “We are committed to maximizing shareholder value and, if it makes sense to proceed, we will do so in a thoughtful and diligent manner," said Irwin Smith, lead independent director of the company.
MDC recorded a 0.3 percent dip in first-quarter revenues to $327.7M and a $2.4M loss.
Its PR units include Allison + Partners, KWT Global and Hunter.
Stagwell's PR properties are Finn Partners, SKDKnickerbocker, Sloane & Co. and Wye Communications.
Public Policy Holding Company grew 27.5 percent to $50.1M during Q1, powered by the accelerating contribution from recent acquisitions and a 5.1 percent hike in organic revenues across its three operating segments.
Institutional Shareholder Services advises investors to vote "no" on a compensation package for WPP chief Cindy Rose at the May 8 annual meeting.
FTI Consulting chalked up a 9.5 percent rise in Q1 revenues to $983.3M, powered by gains in its PR, corporate finance and technology segments.
Stagwell reports 4 percent growth in Q1 net revenues to $585M and a record $141M in net new business wins.
WPP reported a 6.7 percent drop to $3.1B in Q1 like-like revenues less pass-through costs. CEO Cindy Rose says 'it will take time to outpace historical losses."
