425 1 sept0402_425.htm The New Publicis Groupe

Filed by Bcom3 Group, Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934

Subject Company: Bcom3 Group, Inc.

Commission File No. 333-87600

 

Forward Looking Information

This document contains certain "forward-looking statements" within the meaning of the provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like "believe," "expect," "anticipate," "estimated," "pro forma," and "intend" or future or conditional verbs such as "will," "would," or "may." The factors that could cause actual results to differ materially from expected results include, but are not limited to, the factors set forth in Publicis's and Bcom3's filings with the Securities and Exchange Commission (SEC), delays in completing the merger, difficulties in integrating the Bcom3 companies with the Publicis divisions, changes in general economic conditions that may adversely affect the businesses in which Publicis and Bcom3 are engaged and changes in the securities markets. Readers are referred to Publicis's and Bcom3's most recent reports filed with the SEC.

Additional information

Bcom3 and Publicis have filed a final proxy statement/prospectus with the SEC concerning the transaction. Each Bcom3 shareholder will receive a copy of the proxy statement/prospectus by mail. We urge you to read the proxy statement/prospectus, as well as any other relevant documents that either party files with the SEC, because these documents contain important information. You can obtain these documents free of charge at the SEC's web site, http://www.sec.gov.

In addition, you may obtain documents filed with the SEC by Bcom3 free of charge by directing a request to Bcom3 at 35 West Wacker Drive, Chicago, IL 60601. You may also obtain documents filed with the SEC by Publicis free of charge by directing a request to Publicis at 133, avenue des Champs Elysees, 75008 Paris, France.

Bcom3 and certain of its directors, executive officers, managers, and other employees may be soliciting proxies from Bcom3 shareholders in connection with the Publicis transaction. Information concerning those Bcom3 personnel who may be participating in the proxy solicitation is set forth in Bcom3's Annual Report on Form 10-K for the year ended December 31, 2001, and is also set forth in the proxy statement/prospectus.

 

 

 


The New Publicis Groupe

      Presentation to Bcom3 Shareholders

 

 

                  Today's Agenda
New Publicis Groupe
  Why? 
  Why now? 
 

The Publicis advantage 

 

Transaction details — Morgan Stanley
  Mechanics of the transaction
 

Achieving liquidity over time

Q&A
   
Moving Forward
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                  Why do a deal?
Bcom3 declared 4th largest when it was first announced in 1999; No. 7 soon after it officially formed in 2000
— Industry consolidation

Competition using publicly traded stock for acquisitions

IPO less attractive as market weakened
By itself would not add the capabilities and scale we need. 

Publicis emerged as preferred strategic partner
Powerful Dentsu commitment

Current market unrest doesn't alter the importance of this transaction

 

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      Solving Scale & Capabilities

Source: 2001 company financial reports
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      The Impact of the Global Alliance

Source: 2001 company financial reports
  5
                  The best, not the biggest

Big is not a strategy but we will now have the scale to compete.

Unique $4 billion revenue multi-cultural organization.

Geographical dominance — 37,000 people WW

  — Europe (Publicis base of operation)
— North America (almost 50% of new Publicis Groupe worldwide revenues)
— Asia (Dentsu #1 in region)

 

Sources: Form 20-F, Form F-4, Form 10-K, 2002
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      Media Leadership

*Source: The RECMA Report, June 2002
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      World Class Healthcare Capabilties

*Source: MedAd News, April 2002
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                  Compatibility
Complementary client roster
— Increased # global clients
— Limited conflict
 

 

Common thread across all of our operations:
brilliant ideas, collaboration, measurable
results for our clients around the world

 

 
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The New Publicis Groupe

 

      Good for our clients

 

      Powerful agency brands

 
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      Multi-cultural expertise

 
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      Specialized Marketing Services

 
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      World's Leading Media Strength

 
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      Impressive geographic reach
              
- Hundreds of operating units in more than 100 countries

 
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The New Publicis Groupe

 

      Good for our companies

 

                  Public Capital

Money to diversify

Funding to grow

Strength to compete

Security to endure

 

 
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                  Operating In the Publicis Groupe

Autonomous brand agencies
— Saatchi & Saatchi
    >> 21 Lions at Cannes in 2001
    >> Agency of the Year at Cannes in 2002
— Fallon
    >> Creative leader expanding into Singapore, Hong Kong, Sao Paulo
— Publicis Worldwide and Publicis Hal Riney
    >> Present in 83 countries, 2001 revenues of 1.1 billion euros
    >> Renewed commitment to creative excellence
— Nelson Communications
    >> #1 healthcare agency (2001 WW income) per MedAd News

Sources: Industry trade publications, corporate Web sites, fact sheets
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                  Creativity thrives in public
            companies
 

 

According to the Gunn Report, 21
of the 25 most-awarded agencies
in the world operate within the
corporate families of publicly
traded holding companies.
                      --Published 2002

 
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The New Publicis Groupe

 

      Good for shareholders.

 

 

 

Details of the transaction

Frank Oelerich
Managing Director


 

                  Financial glossary
Bond (or Debenture or Note): An interest-bearing security that obligates the issuer to pay the bondholder a specified sum of money, and to repay the principal amount of the loan at maturity
 

Common Shares: Units of ownership of a corporation. Owners typically have specified voting rights and share any dividends pro rata

 

 

 
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                  Financial glossary, continued
Warrant: Essentially the same thing as a stock option. Entitles the holder to buy a specified number of common shares at a specified price, during a defined period of time
 

Exercise Price (or Strike Price): The price at which a share can be purchased over a specified period. For instance, a warrant may allow a buyer to purchase 100 shares of XYZ at any time in the next three months at any exercise or strike price of $50

 

 

 
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                  Financial glossary, continued
OBSA: In this transaction, it represents the combination of the Publicis debentures and the Publicis warrants
 

ORA (or “synthetic” common shares): In this transaction, it represents a security that automatically converts into Publicis common shares over time. Each ORA converts into 18 Publicis common shares, at the rate of one share per year in years 3 through 20

 

 

 
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                  Financial glossary, continued
Usufruct Interest: Consists of all of the economic interest in a common share. In this case, each shareholder will lend Dentsu the voting rights to a portion of his/her Publicis shares, while still retaining his/her economic (or “usufruct”) interest in such shares, for two years after the closing.

 

 

 
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                  What will shareholders receive
Total consideration received:
 — Cash (from Dentsu)
 — Publicis notes (which will be sold after the closing)
 — Publicis common shares
 — Publicis synthetic common shares (ORA)
 — Warrants to acquire Publicis common shares

 

 

 
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                  Transaction summary—step 1
Dentsu to buy common shares for approximately $499MM
As a result, each Bcom3 Class A share will be converted into approximately:
>> 0.814 Bcom3 Class A shares
>> $32.62 in cash
In effect, 18.6% of the Class A shares are being purchased for $175 per share in cash

 

 

 
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                  Transaction summary—step 2
As Bcom3 is merged into a wholly-owned subsidiary of Publicis, each Bcom3 Class A share remaining after the first step Dentsu purchase will be converted into approximately :
  — 2.215 Publicis common shares (including 0.549 usufructs).

— 0.098 Publicis ORAs (= 1.766 synthetic common shares)

— Net proceeds from the sale of €53.86 in principal amount of Publicis notes

— Warrants to purchase 1.766 Publicis common shares at €30.50 per share

 

 

 
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                 Blended consideration for 1,000
           Bcom3 shares
Putting both steps together, 1,000 shares turns into:
  Approximately $32,616.66 in cash
1,355 Publicis common shares
446 usufructs, resulting in 446 Publicis common shares after two years
79 ORAs (entitling the holder to 1,422 Publicis shares to be received in 18 annual installments between 2005 and 2022)
The net proceeds (after expenses and “cash out” of options) from the sale of approximately €43,822.56 principal amount of Publicis notes
Warrants to purchase 1,436 Publicis shares

Cash in lieu of any fractional interest in the Publicis securities to which you would be entitled
 
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      Indexed Stock Price Performance
              
February 14, 2002 to September 3, 2002

 

Publicis $
Publicis €
Comparable
companies

 

 
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                  Transfer restrictions
Lock-up: All Publicis equity securities initially non-transferable with limited exceptions, such as estate planning. These securities will become transferable as follows:
  >> Blocks of 25% of Publicis common shares (including shares from usufruct interests) will become transferable 6-, 12-, 18- and 24-month periods after the merger
>> Blocks of 25% of ORAs and warrants transferable at the end of each of the 30-, 36-, 42- and 48-month periods after the merger
>> Coordinated sale process until 6 months after the 24- and 48-month lock-up dates (“orderly marketing”)
 
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                  Listing:
Publicis common shares, ORAs and Publicis warrants will be listed on Euronext Paris upon close of the transaction
 
Publicis common shares to be issued upon redemption of ORAs and exercise of warrants will also be listed

 

 

 
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                  Permitted transfers
Gifts or other transfers for estate-planning purposes
Gifts to charitable organizations
Transfers to other former Class A stockholders for value or by a gift
Use as collateral for a bank loan, by pledge or otherwise

Transferees are still subject to the lock-up

 

 
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                  Facts worth noting
Largest cash transaction in the marketing services industry
$32.62 alone represents >100% of “book value” under Bcom3 Stock Purchase Agreement
Publicis potential for upside
Every shareholder treated equally in orderly marketing process, no exceptions

Non-compete, non-solicit, confidentiality covenants remain to protect your investment

 

 
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      Questions?

 

 

 

      Unsung Heroes — Thank you

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Conclusion
    - Moving Forward