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The Interpublic Group of Companies, Inc. (IPG - Analyst Report) recently announced that it would convert all of its outstanding 5 1/4% Series B Cumulative Convertible Perpetual Preferred Stock ("Series B Preferred Stock") into common stock through forced conversion. The conversion of the outstanding 221,474 shares of Series B Preferred Stock will be effective from Oct 17, 2013.

On the Forced Conversion Date, each preferred stock holder will be entitled to receive 77.8966 shares of common stock for each Series B Preferred Stock, following which shares of Series B Preferred Stock will cease to exist. Moreover, for the fractional shares, the holders will be compensated with cash.

Additionally, stockholders as of Oct 1, 2013, will be paid a dividend of $13.125 per share of Series B Preferred Stock on Oct 15. Also, post the Forced Conversion Date, the Series B Preferred shareholders are not entitled to receive any dividend payments.

The newly issued common shares by Interpublic will henceforth be a part the company’s basic share count, which might lead to dilution of its reported basic and diluted earnings per share (EPS) in fourth-quarter results.

Interpublic offers a wide variety of advertising and marketing communication services. Moreover, it offers public relations, meeting and event production, sports and entertainment marketing, corporate and brand identity as well as strategic marketing consulting services to customers in more than 100 countries.

Interpublic currently carries a Zacks Rank #3 (Hold). Some better-placed stocks in the same industry worth considering include Clear Channel Outdoor Holdings Inc. (CCO - Snapshot Report), WPP plc (WPPGY - Analyst Report) and Huron Consulting Group Inc. (HURN - Snapshot Report). While Clear Channel and WPP both carry a Zacks Rank #2 (Buy), Huron carries a Zacks Rank #1 (Strong Buy).

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