NEW YORK (TheStreet) -- Shares of Omnicom Group (OMC) continue to fall this afternoon after it was reported that the advertising agency's proposed $35 billion merger with Publicis Groupe S.A. (PUBGY) was at risk.
The shares are down -2.24% to $69.89.
Unforeseen tax issues have thrown the $35 billion merger... into jeopardy, threatening to torpedo plans to create the world's largest advertising and communications company by revenues, the Financial Times reports.
The deal, the Times continued, is structured so that neither company nor their shareholders pay any tax related to the merger, but the groups have struggled to get the arrangement signed off by tax authorities in France, the Netherlands and the U.K.
The deal was announced last July
"There is no plan B. Those things are a requirement to get to a closing," said Omnicom CEO John Wren.
TheStreet Ratings team rates OMNICOM GROUP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OMNICOM GROUP (OMC) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."