Omnicom offers sweetener to discourage exercise of put

New York, July 30 - Omnicom Group Inc. said it is offering a cash payment and extended call period to holders who do not exercise the upcoming put option on its zero-coupon convertible notes due 2032.

The New York marketing and corporate communications company is offering to pay $7.50 per $1,000 principal amount of the notes to holders who do not put the securities and to extend the call protection to July 31, 2009 from July 31, 2007.

The notes are putable on July 31.

The record date is immediately after the close of business on July 31. Holders who bought the notes on July 28 subject to three-day settlement will be eligible for the payment.

Omnicom issued $900 million of the convertibles in March 2002 at par to yield 0% with a 17.6% initial conversion premium.

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