More than 90 per cent of shareholders have approved Omnicom’s acquisition of rival holding company Interpublic Group (IPG) in simultaneous votes.
Although the deal still needs to pass muster with regulators, it is an important step forward in the M&A process.
The exact margin of approval has not yet been publicly released, but both votes passed “overwhelmingly”.
Less popular was an IPG shareholder vote to approve ‘golden parachute’ payments to its leadership team – this vote marginally passed by 53 per cent – paving the way for IPG CEO Philippe Krakowsky to receive payment of $48.6 million as part of the sale. Krakowsky will continue working at the business post-merger.
John Wren, chairman and CEO of Omnicom, said: “We are very pleased to reach this important milestone. The strong support of our stockholders confirms the compelling value proposition of the transaction and the leading-edge services, products and platforms it will create for our people and clients.”
IPG CEO Philippe Krakowsky added: “With an overwhelming majority voting in favour of the transaction, it is clear that our stockholders see the immense opportunity of Interpublic joining forces with Omnicom.”
The takeover needs US and international regulatory approval before it can conclude.
In the US, the Federal Trade Commission has issued a rare second request for information, which is likely to delay the process of months if not longer.
