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Omnicom Group recommends shareholders reject TRC Capital's mini-tender offer

Omnicom Group
Acquisition   Mini-tender offers are not subject to many of the investor protections

Omnicom Group announced that it learned of an unsolicited "mini-tender" offer by TRC Capital Corporation to purchase up to 2,000,000 shares of Omnicom's common stock at a price of $71.50 per share in cash.


The offering price is 4.3% below the closing price per share of Omnicom's common stock on November 2, 2018, the last trading day before the tender offer commenced, and the offering price is 7.2% lower than the closing price per share of Omnicom's common stock on November 21, 2018. The offer is for approximately 0.9% of the outstanding shares of Omnicom's common stock.

Omnicom does not endorse TRC Capital's unsolicited mini-tender offer and recommends that shareholders reject the offer of TRC Capital and not tender their shares. Omnicom is not associated with TRC Capital, its mini-tender offer or the mini-tender offer documentation.

Mini-tender offers are not subject to many of the investor protections afforded to larger tender offers, including the filing of disclosure and other tender offer documents with the U.S. Securities and Exchange Commission (SEC) and other procedures mandated by U.S. securities laws.

The SEC has cautioned investors that some bidders making mini-tender offers at below-market prices are, "hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price."

 

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