Shares of True North Communications (TNO) were off sharply in afternoon trading. News that the advertising company's largest client, DaimlerChrysler (DCX) , may consolidate its annual $1.5 billion ad budget has hit True North's stock hard.
On Wednesday, DaimlerChrysler said that, in an effort to cut costs, it is evaluating its relationships with True North unit
, a division of
. The auto giant currently has accounts with both agencies.
In a statement, David Bell, chairman and CEO of True North said, "we think our chances of being selected for the consolidated business are excellent."
But Bell's optimistic remarks offered little incentive for investors today. Shares of True North were lately trading down $8.31, or 18.89%, to $35.69. Omnicom's stock, so far, has been more resistant to news of the review. In recent trading, Omincom was $2.13 lower, or 2.6%, to $79.63.