The move is designed to maximize shareholder value, according to Snyder Chief Financial Officer Clayton Perfall. Snyder, parent of Arnold Communications and direct-marketing agency Brann Worldwide, has been plagued with stock prices in the mid-teens, while large holding companies such as WPP Group and Omnicom Group have seen stock prices exceed $70 a share and $100 per share, respectively.
Mr. Perfall wouldn't comment on reports Snyder might link up with WPP, Omnicom or Interpublic Group of Cos., which is selling for about $50 a share. No time frame for a decision has been announced.
Snyder shares on Dec. 27, prior to the close, were trading around $19.44 on heavy volume, continuing upward movement from the previous week. The shares hit all-time lows in mid-December.
Copyright December 1999, Crain Communications Inc.