TN to Vote on IPG on Tuesday
CHICAGO—True North Communications shareholders are set to vote tomorrow on the company's proposed acquisition by Interpublic Group of Cos. Pending approval, the deal has one more regulatory hurdle with the European Union but is expected to be official later in the week. A revamped IPG structure, including the assets of TN and a new group called The Partnership, is expected to be made official July 10 or 11. Following reduced earnings estimates by both companies last week, their stocks plummeted, with TN closing down $6.08 to $34.74, and IPG down $5.26 to $30.74. The deal is a stock transaction in which each share of TN will be exchanged for 1.14 shares of IPG.
Arnold Poised to Take Lead on Fidelity Account
BOSTON—Fidelity Investments has parted with Hill, Holliday, Connors, Cosmopulos. Fidelity will likely move the lion's share of its account to Boston-based Arnold, said sources. Fidelity's annual ad spending is about $120 million. Since adding Web-based projects from Fidelity as the year began, Arnold executives have held meetings with client officials in an effort to wrest additional Fidelity business, sources said. Hill, Holliday attributed the impending split to a growing conflict with FleetBoston Financial.
Waldman to Leave Lowe Lintas
NEW YORK—C.J. Waldman, an evp and creative group head at Lowe Lintas & Partners, is leaving the agency to direct. Waldman, an art director, joined the shop in 1993, at the behest of then creative chief Lee Garfinkel. Before that, he and Garfinkel worked together on Pepsi at BBDO in New York. Waldman, who gave notice last week, will remain in New York and work for Harvest Films. "I've been doing [directing] for a couple of years as a hobby … and it just picked up," said Waldman, 38.
Scarpelli Takes Top Post at DDB Chicago
CHICAGO—DDB U.S. creative chief Bob Scarpelli has taken over as chairman of the agency's Chicago office. Alan Pilkington, 58, retired last week after 10 years of running the office. Scarpelli, 48, will continue in his U.S. creative role. Pilkington's duties as president of North America will go to U.S. president Dick Rogers; South America goes to Eduardo Fernandez, president of DDB Latin America.
Congress Addresses Prescription Drug Ads
WASHINGTON—The Food and Drug Administration told a House subcommittee on health last week that direct-to-consumer prescription drug ads are not increasing doctor visits, and M.D.s are not prescribing more drugs as a result. Congress is scrutinizing the ads as it addresses complaints about rising drug costs. Three House members blamed the ads for the price hikes. Janet Woodcock, director of the FDA's Center for Drug Evaluation and Re search, testified, "At present, [the] FDA is not aware of any evidence that the risks of DTC promotion outweigh its benefits."
CFO Leaves Kirshenbaum Bond & Partners
NEW YORK—Bob Bastian, chief financial officer at Kirshenbaum Bond & Partners, has resigned after four years, the agency confirmed. Bastian, 45, is leaving to fill a financial post at Euro RSCG in New York, where he spent six years prior to Kirshenbaum.