Los Angeles-based investment giant Capital Group International, already the largest single stockholder in Interpublic Group, has increased its stake in the advertising holding company from around 7% to 8% - representing some 31.2 million shares.
The increase was revealed in a filing with the Securities and Exchange Commission on October 17 and could account for some of the unusually high recent share trading in IPG stock [WAMN: 17-Oct-03].
The filing does not, however, include last week's stock flurry when over 7.9 million shares changed hands on October 14 - the sixth time since April 15 the group's daily trading volume surpassed the seven million mark.
Industry observers believe the bettors at CGI are gambling on the emergence of IPG stock from its current depressed state, trading at just $14 a share - far below its peers Omnicom Group (some $75) and WPP Group (around $48).
Opined J P Morgan analyst Fred Searby: "This is a value restructuring play."
Data sourced from: AdWeek.com; additional content by WARC staff