| Interpublic has played down the GM account
loss saying the US account accounted for only 1 percent of Interpublic's
2004 revenue, as well as $5 million in profit. But according to reports,
the company is gripped by financial and operational problems which
have led it to restate earnings and delay its recent quarterly reports.
In a filing on 13 May with the Securities and Exchange Commission,
Interpublic said it still had not completed the reports and did
not know when they would be ready. This was the third time since
March that the company had expressed its inability to file the reports.
Meanwhile, the fate of the 200 employees at GM Mediaworks, the
company floated by Interpublic exclusively to deal with the GM media
business, hangs in the balance. The theory that, Publicis-owned
GM Planworks, which has now replaced Interpublic's GM Mediaworks
as General Motors' media buying agency, might hire some of those
'out of work' is also gaining ground.
GM Planworks president Dennis Donlin has been quoted in media reports
as saying that he would look inside the GM system, Publicis's own
Starcom MediaVest and elsewhere for additional staff members while
confirming that there will be an increase in body count.
Also read:
GM
consolidates US media biz with Starcom; six agencies in fray for
India account
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