WINNICK USES RUBENSTEIN

Gary Winnick, the embattled Global Crossing founder, is using Rubenstein and Assocs. to handle media relations. Many investors blame Winnick for the downfall of the firm, which is under investigation by the Securities and Exchange Commission and the FBI.

Winnick was a former junk bond salesman at Drexel Burnham Lambert before he set up GC in 1997. Though Winnick is credited with building the high-tech communications network, The Wall Street Journal said he has come to embody the excesses of the fallen telecommunications industry.

Marcia Horowitz, executive VP at RA, represents Winnick.

MYANMAR PAYS DCI $35K A MONTH

The Union of Myanmar, which is ruled by a ruthless military junta, has retained Washington, D.C.-based DCI Assocs. to improve its relationship with the U.S. DCI is to brief members of the Bush Administration and Congress that the former Burma is now committed to democracy and human rights. It also wants to be considered a foot soldier in President Bush's so-called "war on terror." DCI received a $100,000 retainer from Myanmar in early April, which will cover work through July 15. It will then bill Myanmar $35K a month.

DCI has been retained by Myanmar's State Peace & Development Council.

SW FIGHTS 'CORPORATE PATRIOT' ACT

The Stanley Works, which wants to cut its U.S. tax bill by $30 million a year by reincorporating in Bermuda, has hired Williams & Jensen to lobby against the "Corporate Patriot Enforcement Act."

That bill, introduced by Rep. Richard Neal (D-Mass.), would amend the Internal Revenue Code of 1986 to prevent corporations from avoiding U.S. income tax by reincorporating in a foreign country.

The 159-year-old New Britain, Conn., toolmaker justifies its reincorporation move in the name of corporate flexibility.

Weber Shandwick handles SW.

Edelman PR Worldwide has established Edelman Corporate Governance Advisors with former Securities and Exchange Commission chairman Richard Breeden. Its aim is to help companies build investor confidence through effective communications.

ORBIS DENIED INJUNCTION VS. PRN

New York Supreme Court Justice Ira Gammerman has denied Orbis Broadcast Group's motion for a preliminary injunction against PR Newswire, MultiVu and six staffers including MV president Tim Bahr. He also "vacated" a limited "temporary restraining order."

Orbis filed a suit May 6 contending that PRN breached a contract when it hired Bahr, who was president of OBG's broadcast group, and others to run MultiVu, a company formed to provide VNRs and a range of electronic publicity tools.

Gammerman said it appears that Orbis "is trying to bootstrap the confidentiality provision of the co-marketing agreement to cover the absence of noncompete agreements with the individual defendants who don't have one, or the non-compete agreement with Bahr from which he was released."

An injunction would have prevented MultiVu from using what OBG considers its trade secrets and confidential proprietary information, such as customer lists.

Charles Morin, CEO of PRN, said: "It is not uncommon for a company to use legal channels to slow down or thwart a competitor's advances."

SEC PROBES OMNICOM

The Securities and Exchange Commission wants Omnicom to provide details concerning the resignation of two "outsider" directors from its board, and the firing of Arthur Andersen as its auditor.

Omnicom has "voluntarily" provided the info to the SEC staff about the auditor change to KPMG, and last month's resignation of audit committee chairman Bob Callander and the Jan. 28 departure of Richard Beattie. Omnicom, via a statement, said it anticipated the SEC request following the June 12 Wall Street Journal story outlining its aggressive accounting techniques. The request is "not unusual," said the communications conglomerate.

Omnicom has posted the resignation letters of Callander and Beattie on its website. Callander's May 22 "letter" to OMC chairman Bruce Crawford is one sentence: "Effective immediately, I am submitting my resignation from the board of Directors of the Omnicom Group, Inc." Callander, a director for 10 years, had questioned whether he was properly informed about the Seneca off-balance sheet entity that houses OMC's Internet investments, according to the WSJ.

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MEDIA CALLED 'FAIR, BALANCED' ON MIDEAST

The U.S. media are "fair and balanced" in reporting on developments in the Middle East, according to Alon Pinkas, Israel's consul general in New York. Pinkas says there is more of a pro-Israel than an anti-Israel tendency in the media since the Sept. 11 terror attacks.

The CG thinks those who detect an anti-Israel bias in the American media are reacting on more of an emotional than substantive level. Those critics just don't want to see any Palestinian spokesperson on the airwaves, Pinkas told Ha'aretz. "They believe the Israeli cause is right and just but then they see unpleasant images from the field, and that generates dissonance," he added. Pinkas considers it nonsense to say that CNN or ABC-TV News anchor Peter Jennings hate Israel, or that "The New York Times is no more than a collection of self-hating Jewish liberals."

The 41-year-old Pinkas, who was appointed by Ehud Barak, says it is undeniable that some of the images of Israel are "hardly flattering." For instance, "If Israel decides that it has to launch a military campaign against terrorism, it has to take into account that it won't come across well in the media. Entering Jenin is not figure skating. A military operation never looks good, especially when you are ten times stronger than the Palestinians," he said.

"When television shows a tank crushing a car, you won't be able to explain that the car was threatening the tank. Anyone who thinks that can be done doesn't understand advocacy," he said.

Israel's New York Consulate keeps close tabs on the Times' editorial and op-ed pieces. Pinkas said 60 percent of those pieces were pro-Israel or balanced, while the remainder were pro-Palestinian or tilted that way since Sept. 11.

Ha'aretz branded Pinkas, who is a frequent guest of U.S. news programs, "Israel's premier warrior in the battle for public opinion in the U.S."

He usually squares off against Abdel Rahman, the Palestinian Authority representative in the U.S.

DOLE RIDES TO TYCO RESCUE

Tyco International has hired Bob Dole, the former Senate Majority Leader and Republican Presidential candidate, as its lobbyist. As head of Bob Dole Enterprises, the Kansan will advise Tyco on corporate tax matters.

Interim Tyco CEO John Fort has been trying to right the embattled $36 billion company that is under investigation by the Securities and Exchange Commission and Manhattan District Attorney's Office.

Both Moody's Investors service and Fitch Ratings recently downgraded Tyco's credit to junk bond status.

Fort took the helm following the resignation earlier this month of Dennis Kozlowski who was indicted on charges that he evaded New York City sales taxes by shipping artwork that he purchased there to Tyco's corporate headquarters in New Hampshire.

Dole remains special counsel at Verner, Liipfert, Bernhard, McPherson and Hand.

STEWART URGED TO 'GO PUBLIC'

Martha Stewart's only hope for saving her brand is to "go public" with the truth about her alleged insider trading, says Peter Montoya, publisher of Personal Branding Magazine. He believes Stewart is making a costly mistake by listening to her advisors, who are telling her to avoid the press and "deny everything." Stewart is under investigation on charges of insider trading in ImClone Systems, a troubled biotech firm.

"Place yourself squarely in front of the cameras, without a lawyer in sight, and candidly speak the truth in plain English," says Montoya, who has put together a "Survival Guide" for the queen of taste. "Don't over-rehearse, don't get defensive-just answer questions," he advises Stewart.

He said her denials will only serve to "insult us. Look at the permanent cloud over Bill Clinton and Richard Nixon. We hate cheats and liars. And we never forgive them," said Montoya.

If she is guilty of insider trading, Montoya said it will cost her potentially millions in fines, and possibly trigger criminal charges, but it will be far less than the potential loss of revenue that her personal brand generates every year, and her status as "America's Homemaker."

Susan Magrino Agency does PR for Stewart.

70% OF PR PROS ARE UNHAPPY IN JOBS

Seventy percent of PR people are "not at all" satisfied or are only "somewhat" satisfied in their current positions, and more than half (58%) plan to leave their current employer within a year. That is a finding of a survey of 800 PR pros conducted by Workinpr.com, a Seattle-based PR recruiting and career site.

When asked why, 21% indicated it was because of a lack of challenge.

"The fact that employees are planning to leave within a year even in this uncertain market is a bit of a surprise," said Renee Dunn, president/CEO of Workinpr.com. "It is obviously a good time for CEOs and VPs to check in with their top performers."

Another trend from the survey revealed 85% of employers would use freelancers instead of hiring full-time PR pros.

Almost three-quarters (72%) of employers claim their company is not currently hiring, and 37% do not project any headcount growth for the next 6-12 months.

Many are freelancing, perhaps not by choice. More than half (56%) of PR freelancers have been freelancing for less than one year, and 75% of free-lancers are currently seeking full-time employment, while 51% claim that finding consistent employment is the hardest aspect of freelance/consulting work.

Publicis Groupe shareholders June 18 approved the $3 billion acquisition of Bcom3 Group, parent company of Manning, Lee & Selvage, to create the No. 4 communications giant. Closing date of the deal has been put back to September from June 30 due to various regulatory delays.

STEPHANOPOLOUS IS 'THIS WEEK' ANCHOR

George Stephanopoulos was named anchor of the ABC News Sunday morning program "This Week."

Stephanopoulos, who has been an analyst and correspondent with ABC News, will start anchoring in September. He replaces San Donaldson and Cokie Roberts, who will remain with ABC News.

The new anchor joined ABC News in 1997 after serving in the Clinton Administration as the senior advisor to the president for policy and strategy.

Donaldson will continue to anchor his syndicated daily radio program, "Live in America," and his webcast, "Sam [email protected]."

Roberts, who writes a syndicated column, will continue to have an on-air role. She is at work on a book, "Founding Mothers," which will be published early next year.

George Will, who has been a regular contributor to This Week since the program premiered in 1981, will continue to be a panelist on the broadcast.

Jon Banner was named executive producer of This Week, replacing Virginia Mosely, who was named director of editorial projects for ABC News.

CRAFT JOINS UPSIDE AS TOP EDITOR

Lester Craft has joined San Francisco-based Upside Magazine as editor-in-chief, suceeding Jerry Borrell, who left.

Craft had been editor-in-chief of Line56 Magazine and senior editorial executive at Cahners Business Information.

Upside, a high-tech business publication, is wholly owned by MCG Capital Corp., a financial services company.

PEOPLE

Scott Gramling, 31, was promoted to editor-in-chief of London-based FHM's U.S. edition, succeeding Ed Needham, who was named managing editor of Rolling Stone.

Gramling was an associate editor of Sports Illustrated for Kids' book division before joining FHM as deputy editor last February.

Art Lenehan, previously night editor, was promoted to managing editor of The Record of Bergen County, N.J.

Chris Worthington was named managing editor/local news and business at The St. Paul (Minn.) Pioneer Press, and Cathy Straight was named managing editor/features and sports.

Scott Shuger, 50, who started Slate.com's "Today's Papers" column in 1997, died in a scuba-diving accident on June 15 near his home in Los Angeles.

Juan Gonzalez, a columnist for The New York Daily News, was elected president of the National Assn. of Hispanic Journalists during the Association's annual convention in San Diego, June 12-15.

Gonzalez is one of the founders of NAHJ and co-founder of Unity: Journalists of Color.

Jonathan Higuera, who is business writer for The Arizona Daily Star, was voted in as VP for print; Art Rascon, an anchor and reporter for KTRK-TV in Houston, VP of broadcast; Javier Aldape, publisher for La Estrella in Fort Worth, financial officer, and San Jose Mercury News race and demographics editor Anne Vasquez, secretary.

WILD SHOWS LINKED TO LOWER AD RECALL

A new study by researchers at Iowa State Univ. involving 324 TV viewers found sexually explicit and violent programming can overwhelm the effectiveness of commercials.

Those watching programs such as "Miracle Pets" or "Candid Camera" remembered more commercials than those watching wrestling or "Howard Stern."

Viewers watching neutral programs were able to remember 3.15 commercials, while those watching violent shows remembered 2.09 ads and those watching programs with sexual content remembered 1.72 ads.

The participants were given a surprise quiz immediate after the shows.

Critics called the study too small and unfair. The criticism was directed mostly at the format, in which the same nine commercials, including ads for laundry detergent and cereal, were aired with all of the programs.

MEDIA BRIEFS

The Asian Wall Street Journal Weekly will publish its last issue on July 1.

PlayDate 2002, a one-day, media-only event to showcase retailers' predictions for the hottest Holiday toys and games, has been scheduled for Oct. 22 at the Metropolitan Pavilion in New York.

Hill and Knowlton, Los Angeles, which is handling this year's event, is inviting reporters to register by sending an e-mail to [email protected].

Starbucks Coffee pulled a promotional poster from more than 3,000 retail outlets over concerns the picture of drinks side by side might inappropriately recall the Sept. 11 attacks. Starbucks pulled the posters after being contacted by a reporter for The New York Post, who was following up on a reader's complaint.

Hearst Corp. is starting a TV channel in Argentina and Mexico on July 1, based on its women's magazine Cosmopolitan.

USA Today has begun "Market Trends"-a new "Money" section feature that will run every Monday. The new page shows a graphic view of stock market and economic trends.

(Media news continued on next page)

MSNBC EXECS DEFEND MORE TALK FORMAT

NBC News president Neal Shapiro said he is "very comfortable" with MSNBC's move from straight news to an opinion format.

"We're a newspaper in the morning and weekly newsmagazine in the evening," Erik Sorenson, MSNBC's president, said of the new format. "We're such a news-rich culture and society right now; what consumers are demanding is analysis. They want to know, `What does it mean?'"

MSNBC is replacing four hours of daytime news programming with two two-hour blocks of opinion, one from New York radio hosts Ron Kuby, a liberal, and Curtis Sliwa, a conservative; the other from former California Democratic party leader Bill Press, who was recently let go from CNN's "Crossfire," and former Republican presidential candidate Pat Buchanan, also formerly of Crossfire. Both shows will include news updates.

In the evening, liberal Phil Donahue is returning to TV and Chris Matthews' "Hardball," which has diverse opinions, is getting a primetime slot.

Jerry Nachman, former editor of The New York Post and MSNBC's new editor-in-chief, will also get an hour that will look at stories behind the day's news.

"I understand why some people are upset," Shapiro told The Los Angeles Times, but added that they haven't seen how the moves will be executed.

"We are going to be the most aggressive, hard-charging news operation on cable," he said, and some days the commentators won't get on the air because there is so much news.

"But as we all know," Shapiro added, "in the news cycle there are hours when nothing's happening. Rather than stretching reporters to say the same things over and over and over again-another criticism of cable news-why not inject a little more analysis and opinion? But until people actually see it, they fear it's going to be nothing but a screaming fest" he told the Times.

PULITZER PRIZES DON'T WIN READERS

Winning a Pulitzer Prize brings respect to a newspaper but not readers, according to a study made by a Houston-based syndicated media ratings service that provides trend data on market penetration and market share.

The Media Audit reached this conclusion after examining a list of 18 cities with daily newspapers that won at least four Pulitzers during the 1990s.

"Even in New York where The New York Times, Wall Street Journal, and Newsday win Pulitzers every year, the percentage of adults who read a daily newspaper on an average weekday declined from 64.8% in 1997 to 58.7% in 2001," said Bob Jordan, co-chairman of International Demographics, a 31-year-old research firm which publishes TMA.

Only two of the 18, Detroit and Des Moines, had an increase (between 1997 and 2001) in the percentage of adults who read a daily paper on an average weekday.

However, the Detroit and Des Moines surveys for 2001 were conducted after 9/11, and the readership levels in many markets were no doubt affected by those events, the research firm said in its report.

MAGAZINE FOR GRANDPARENTS DEBUTS

The first issue of Get Up & Go, a new magazine for grandparents, has been published by United Parenting Publications, Carrollton, Tex., a division of Trader Publishing, which publishes 27 monthly parenting titles.

The magazine's editorial focus will be on parenting issues and travel destinations.

The magazine, which will be published three times per year, is distributed through local grocery stores, bookstores, travel agencies and other retail outlets in 12 of United's 27 markets.

The next issue will be published in October.
Bill Lindsay is editor-in-chief at 617/522-1515; e-mail: [email protected].

HEALTH EXPERT TO START A NEWSLETTER

Phillips Health, Potomac, Md., is starting a monthly health newsletter with Patrick Holford, who is an authority on nutrition and new approaches to health and well-being.

The new publication, Patrick Holford's Wellness Advisor will be complemented by a new website (www.holfordhealth.com).

Bob Kroening, managing editor of the newsletter, is based in Potomac at 301/340-7788 ext. 1091.

COWBOYS & INDIANS LASSOS PRICE

Judith Price, the former owner and publisher of Avenue Magazine, a popular lifestyle magazine for people who live in New York, has joined Cowboys & Indians Magazine to oversee circulation sales and provide direction for key national ad accounts.

The Houston-based magazine, which has a paid circulation of 100,000, is read by Western home, ranch, and horse owners in major markets of Texas, Colorado, Arizona and California.

C&I covers a range of lifestyle topics: art, home interiors, travel, fashion and Western film.

MAGAZINE LISTS HISPANIC-OWNED COS.

Hispanic Business, based in Santa Barbara, Calif., ranks the 500 largest Hispanic-owned companies in the U.S. in its June issue.

The rankings can also be viewed online at www.HispanicBusiness.com.

The June issue also marks the debut of the magazine's new layout and several new editorial sections, including "TechPulse" (technology news/reviews), "LegalEase" (practical legal advice for businesses), "The Informant" (news, trends, and numbers in the U.S. Hispanic economy), and "ProActive" (career news and workforce trends).

SEC PROBES OMNICOM

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Beattie's Jan. 28 letter cited "increasing demands on my time as Vice Chairman of the Board of Overseers and Managers of Memorial Sloan-Ketting Cancer Center and Chairman of the Board of Managers of Memorial Hospital for Cancer and Allied Diseases" as reasons for leaving the OMC board.

Omnicom was also charged with "artificially inflating" its stock price by making a "series of material misrepresentations to the market," according to a class action suit filed by Milberg Weiss Bershad Hynes & Lerach. CEO John Wren, Chairman Bruce Crawford, CFO Randy Weisenburger and Senior VP/Controller Philip Angelastro are named as defendants in the suit filed in the U.S. District Court, Southern District of New York.

Weisenburger Cloaks Holdings

Although Weisenburger of Omnicom has the same title and appears to perform the same duties as Sean Orr, executive VP and chief financial officer of Interpublic, there is no information about Weisenburger's stock holdings, salary, etc., in OMC proxy statements.

There is copious material about Orr's stock holdings, salary, etc., in IPG materials.

Weisenburger, in an e-mail to the O'Dwyer website, said SEC rules only require that the "five highest paid executive officers of a company" must provide their stock holdings, options, salary, etc., and he "does not qualify as either."

The OMC CFO, who acts as chief spokesperson for OMC in conference calls with security analysts, a role also performed for IPG by Orr, acknowledged a new SEC filing showing he purchased 20,000 shares of OMC on June 13 at $55.10 a share.

Wren also purchased the same amount of shares at the same price on the same day. The blocks of stock cost about $1 million each.

A report by Bear Stearns & Co. on June 18 said "the issues about Omnicom that have been in the paper (have) dampened the valuations of the entire group."

OMC had been trading in the early $90's in May. The steep decline touched off at least nine class-action stockholder lawsuits claiming that corporate officers have been selling the stock based on inside information.

Insiders have sold $72 million in OMC stock in the past two years.

OMC executives, in the past ten years, have purchased company shares on the open market on only three occasions, according to the Washington Service, which tracks insider activity.

Weisenburger told WS that he had purchased some OMC shares in 1998. He told the O'Dwyer website that he purchased 20,000 shares in 1998 and also has acquired the maximum allowable number of shares each year via the company's Employee Stock Purchase Plan.

Asked via e-mail to provide the total number of OMC shares he owns or has options on, he said the total is between 50,000 and 65,000.

In being designated as a "non-executive" officer of OMC, Weisenburger is spared doing the detailed reporting of remuneration required of executive officers.

Orr Got Salary & Bonus of $1M in 2001

Orr, who is deemed by IPG to be an executive officer, reported his annual salary is $600,000 (contract effective until May 31, 2004); was paid a bonus of $400,000 in 2001; received $367,500 under the Long Term Incentive Plan; owns 41,394 shares of stock and has options on 16,800 other shares, and received options on 48,000 shares Jan. 1, 2001, at the price of $40.46 which expire in 2011.

Estimated future payouts to Orr under the long-term plan range from $240,000 (threshold) to $1.38 million (target) and $2.1M (maximum).

If Orr dies while employed by IPG, $165,000 a year will be paid to his beneficiaries for 15 years after his death.

If he retires or resigns on or after his 55th birthday, he will be paid benefits for 15 years ranging from $115,500 to $165,000 a year, depending upon the year he leaves IPG.

IPRA QUITS GLOBAL ALLIANCE

The International PR Assn., which has 900 members in about 90 countries, has withdrawn from the Global Alliance for PR and Communications Management that was formed at the 2000 PRSA conference in Chicago.

IPRA was one of the founding members and took part in all the exploratory meetings, said Jim Holt, CEO of IPRA.

However, he said IPRA favors the Alliance as a group of national PR associations cooperating on an informal basis.

Since the Alliance has now announced it will incorporate itself as an organization with its own structure, IPRA can no longer support it, said Holt in an e-mail he sent June 18 to organizers of the Alliance.

Such a move, he wrote, can cause a draining of the finances of the members or lead to "a dependence on those associations that have the resources."

There can be a "consequent destruction of the principles of inclusion and equality such as can already be detected in the proposed constitution," he wrote.

The Alliance has attracted about 24 groups from among the more than 80 national PR organizations worldwide.

IPRA Against Signing a New Code

IPRA members, he said, have already agreed to abide by IPRA's own "Code of Athens," which he said is based on the Charter of the United Nations, with which IPRA has consultative status.

There would have to be a "full consultative process and vote of all IPRA members" for them to sign a new code, said Holt.

"We see little benefit to our members in taking this step," said Holt.

Joann Killeen, president of PRSA, went to a meeting of the Alliance in South Africa March 1-3 that drew representatives of over a dozen PR groups.

The near-collapse of Omnicom's stock price following the June 12 Wall Street Journal article continues to dominate news of the ad/PR world.

The decline from $93 to the low $50's wiped out $8 billion of OMC's $18B in equity and touched off at least nine class-action stockholder suits. The suits charge that insiders have been improperly selling the stock in the "class period," which is designated from April 25, 2000 to June 22, 2002. According to Yahoo!'s tabulation, 841,439 shares worth $72 million have been sold by 15 insiders since May 31, 2000, at an average of $85 a share.

Keith Reinhard, CEO of DDB, sold 313,450 shares for $27.4M after exercising options that cost him $6M. Alan Rosenshine, CEO of BBDO, sold 242,000 shares for $21.3M, exercising options that cost him $1.8M.

The Washington Service, which also tracks insider data at the SEC, said OMC executives have purchased stock of their company on the open market only three times in the past ten years.

While Interpublic CEO John Dooner got options on 100,000 IPG shares at $40.46 in 2001, OMC CEO John Wren got options on two million OMC shares at $79.50 in 2001.

Wren and OMC CFO Randy Weisenburger purchased 20,000 shares each at $55.10 on June 13.

Analysts following OMC generally rallied to the defense of the conglomerates.

Merrill Lynch's Lauren Fine gave OMC a "strong buy near and longterm" on June 18. She had downgraded OMC to a "buy" on May 30 and had written negatively about the entire ad sector on the same day. But she reversed herself a week later.

Fine's restored rating of OMC failed to halt the decline in the stock. She had written on May 30 that investors in the $850 million in zero-coupon "LYONS" convertible bonds would not want their money back as long as OMC's stock price was above $84. This offering was managed by ML.

With OMC now trading in the $50's, we attempted to ask her if this meant investors would now want their money back. However, she has not returned phone calls. We asked two PR pros in the ML PR department the same question and they hung up on us.

The LYONS are a "pure play" in that they pay no interest. Investors can only hope that OMC's price rises substantially above $110 a share. ML also owns 739,000 shares of OMC.

A report by Fine on June 19 said that ML had "hosted a dinner with OMC management" focusing on OMC's off-loading its dot-com investments and how OMC calculates internal growth vs. growth by acquisition.

Fine is concerned that the WSJ is "not done" with OMC and adds: "While we know of no new issues that could be reviewed, they (WSJ) appear to be having fun producing innuendo rather than insight."

Wren told analysts at the June 12 conference, in reference to the WSJ story, that, "There's been nothing fundamentally that happened here. Nothing whatsoever, other than the WSJ article." In other words, the WSJ story constitutes "nothing."

Odds are that lenders will seek their money back on the $850M LYONS and the $900M zero-coupon bonds floated by J.P. Morgan Securities in March 2002. OMC would have to raise the $1.75B via other sources if both zero-coupon bonds are "put" back to OMC.

Analysts say OMC will have to pay the money back or add a "sweetener" such as interest payments to make the investors happy.

The New York Times, in the first week and more after June 12, barely touched on OMC's problems. Ad columnist Stuart Elliott wrote for a late edition June 13 that OMC stock had experienced its "biggest one-day fall since the company was formed in 1986" and that Interpublic and WPP were also down. The Times and other media may now be preparing their own reports on what could be one of the biggest ad stories of all time-the reversal of the consolidation trend.

A lengthy article on OMC in Fortune on Sept. 17, 2001 by Patricia Sellers said the company once owned 20 dot-coms worth $3.5 billion in the stock market and that Wren at that time was "getting all the net assets off OMC's books by shoveling them into a private holding company called Seneca." Whether OMC properly pulled out of its dot-com investments is a matter that is hotly disputed. Wren, in the June 12 teleconference, said OMC "never swept anything over the side." The text of the 50- minute conference with analysts is on the OMC website: www.omnicomgroup.com.

From June 12 to June 24, 855 messages about OMC were posted on the Yahoo! bulletin board including 251 on June 12. Previous message traffic was three to six a day. Some of the participants are employees worried about OMC stock in their 401K plans. There is grousing that some of the top executives are getting unimaginably rich while those in the lower rungs are losing their jobs or otherwise getting the short end of the stick. The big names like BBDO and DDB are doing O.K. but the boutiques are having a rough time, said one posting.

A recent CBS-TV report portrayed the Hamptons on Long Island as a decadent, pricey resort area but failed to mention family-oriented Westhampton. Merchants advertise one-bedroom apartments for as little as $3,000 a month (631/288-2248).
--Jack O'Dwyer