IPG Stock Sinks to 52-Week Low

NEW YORK In trading volume nearly seven times its average, Interpublic Group’s stock on Tuesday dipped as low as $10.05 per share before rebounding slightly to close at $10.51, still a new 52-week low.

Analysts attributed the high-volume activity to IPG’s one-day offer of convertible perpetual preferred stock to institutional investors, which is expected to raise about $600 million.

While the private offering will help IPG cover the payment of client and vendor credits and the rising cost of professional fees, among other anticipated expenses, it also will have a dilutive effect on its stock, given the issuance of 500,000 shares, each of which will be convertible into 70 shares.