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Interpublic to buy True
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March 19, 2001: 11:05 a.m. ET
Stock deal valued at more than $2B increases Interpublic's global reach
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NEW YORK (CNNfn) - Interpublic announced Monday that it had agreed to buy True North Communications for $2.1 billion to create the world's biggest advertising company.
The world's No. 3 advertising company hopes the acquisition will boost its position as a U.S. industry leader. The boards of both companies approved an all-stock transaction on Sunday.
The deal marks the end of a closely watched auction that saw True North linked with a variety of potential buyers, including France's Havas Advertising and Britain's WPP Group.
 True North (TNO: Research, Estimates), the Chicago parent of Foote Cone & Belding and the Bozell Group, entered into exclusive negotiations this weekend with Interpublic, the corporate parent to the big New York agencies McCann-Erickson WorldGroup and Lowe Group.
Interpublic (IPG: Research, Estimates) is offering 1.14 of its shares for each True North share. That values True North at $40.24 a share, just slightly higher than its closing price Friday of $39.31 a share, up $1.91 on the New York Stock Exchange.
The transaction significantly alters the global advertising landscape, making Interpublic the world's largest advertising company by revenue and a powerhouse in media services.
The combined company would have revenue of $7.2 billion, based on reported 2000 results, it said.
True North shares fell $1.19 to close at $38.12 Monday while Interpublic dropped $1.13 to $34.17. 
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