Mark Penn
Mark Penn

Stagwell Group, a holding company formed by Mark Penn in 2015, has proposed merging with MDC Partners to create a $2B ad/PR combine.

Penn, who chairs and owns a 30 percent MDC stake, said a deal would result in $35M in cost synergies and offer "best-in-class combination of insights, creative, digital and performance."

Stagwell's $4.25 per-share offer represents a 263 percent premium to MDC's June 24 closing stock price of $1.17

MDC has formed a special committee of the board to evaluate Stagwell's officer. “We are committed to maximizing shareholder value and, if it makes sense to proceed, we will do so in a thoughtful and diligent manner," said Irwin Smith, lead independent director of the company.

MDC recorded a 0.3 percent dip in first-quarter revenues to $327.7M and a $2.4M loss.

Its PR units include Allison + Partners, KWT Global and Hunter.

Stagwell's PR properties are Finn Partners, SKDKnickerbocker, Sloane & Co. and Wye Communications.