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The Deal: Omnicom Fusion Creates New Advertising Leader

Publicis Omnicom will be registered in the Netherlands and listed on the New York Stock Exchange and on Euronext Paris. The deal is subject to shareholders' approval and is expected to close in the last quarter of 2013 or the first quarter of 2014.

The merger partners will also have to convince clients of the value of the deal and offer assurances that evident conflicts can be managed by internal firewalls. Omnicom counts PepsiCo (PEP - Get Report) and Microsoft (MSFT - Get Report) amongst its clients while Publicis has Coca-Cola (KO - Get Report) and Google (GOOG - Get Report).

Talks between the two companies began after Wren and Levy met six months ago at the World Economic Forum in Davos, Switzerland.

Omnicom tapped Moelis & Co. for financial advice and took legal counsel from a Latham & Watkins team including Mark Gerstein, Brad Faris, Joel Trotter, Jeff Hammel, Timothy FitzSimons, Olivier du Mottay, Charles-Antoine Guelluy, Alex Cohen Nicholas DeNovio, Laurence Stein,Sean Finn, Xavier Renard, Roger Goldman, Marc Williamson, Michael Egge and David Della Rocca. Omnicom also took legal advice from De Brauw Blackstone Westbroek.

Publicis turned to Rothschild for financial advice. It took legal advice from a Wachtell, Lipton, Rosen & Katz team including partners Martin Lipton, Adam Emmerich, Ante Vucic, Deborah Paul, Michael Segal, David Kahan, Eric Rosof and Ilene Gotts. Publicis also took counsel from Darrois Villey Maillot Brochier and NautaDulith.

Publicis shares were suspended from trading Monday after the French company asked that its stock resume trading when the New York market opens to allow the two companies' stock to open simultaneously. Publicis shares closed Friday at 59.35 Euros and are up 31% since the start of the year. Omnicom shares closed Friday at $65.11 and have gained 30% in the year to date.

Written by Paul Whitfield.
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