Interpublic Group cut to Hold at Argus on concerns over Omnicom merger

As previously reported, Argus downgraded Interpublic Group (IPG) to Hold from Buy. The firm has long viewed Interpublic as a well-run company with a strong track record in its industry, but in December, IPG agreed to be acquired by peer and rival Omnicom (OMC) to form the biggest advertising company in the world, and the proposed merger gives Argus pause on concerns that integrating the two companies will likely slow earnings, cash flow, and dividend growth, the analyst tells investors in a research note.