July 24 (Reuters) - Hedge fund Elliott Management has takena 6.7 percent stake, representing about $570 million, inadvertising firm Interpublic Group of Cos Inc andannounced plans to meet with its board to discuss boostingshareholder value.
Elliott Management, the $24 billion hedge fund founded byPaul Singer, said in a regulatory filing that IPG's shares "areundervalued and represent an attractive investment opportunity."The hedge fund said it wants to "engage in a constructivedialogue" with the company's board of directors to maximizeshareholder value.
IPG shares were up 0.8 percent to $20.01 in morning trading.A spokesman was not immediately available to comment.
IPG, whose agencies include McCann Erickson and FCB, haslong been rumored as a takeover candidate and the speculationhas only increased as the advertising sector consolidates.France's Publicis and the U.S.-based Omnicom planned to merge in a $35 billion deal that would have resultedin the world's largest advertising agency, billing it as abetter way to compete more effectively in the digital arena.
That potential marriage collapsed as the two companiesclashed on culture and couldn't agree on leadership orstructure.
IPG's clients include General Motors, Unilever and Johnson & Johnson.
This is the second bet this week by Elliott Management,which invested more than $1 billion in data storage productsmaker EMC with an aim to push it to spin off its VMwareunit. (Reporting by Liana B. Baker and Jennifer Saba; Editing by NickZieminski)
Unilever (ULVR)
WPP (WPP)