IPG Sets Date for Shareholders Meeting

NEW YORK Interpublic Group said today that its annual shareholders meeting will be held on Nov. 14.

The meeting has historically taken place in May, but was postponed when the company failed to close the books on its 2004 fiscal year.

This year’s installment could serve as a referendum on whether to sell the company following the decision by the Securities and Exchange Commission to reject IPG’s request to block a sale proposal put forth by a company investor [Adweek Online, Sept. 20].

The SEC said it would not act to keep a proposal by shareholder Charles Miller off the proxy for IPG’s 2005 annual meeting.

The meeting location, time and agenda have not been determined.

Last week, IPG said the material restatement resulting from its six-month internal financial review totaled $550 million for the period of 2000-04. Roughly half of that reduction in earnings and shareholder equity came before 2002, IPG said.

About $441 million, or 80 percent, of the restatement was due to poor accounting for revenue, said IPG. The next biggest chunk, about $105 million, stemmed from acquisition accounting problems. Roughly 10 percent, or $55 million, resulted from employee malfeasance, including the falsifying of books; violations of laws, regulations and company policies; the misappropriation of assets; and inappropriate customer charges and dealings with vendors.

A positive adjustment related to goodwill and impairment charges reduced the size of the restatement.

—Adweek staff report