Edition, August 14, 2002, Page 1
B-M WINS $55M 'COLOR OF MONEY'
The U.S. Treasury Dept.
has selected Burson-Marsteller to handle a five-year $55
million contract to introduce the new line of U.S. currency
featuring color and anti-counterfeit features. That paper
money is to be launched next year.
Mike Dolan, CEO of Young
& Rubicam, B-M's parent, called the bidding for the
Treasury work the "year's largest and most contested
IPG's Weber Shandwick,
OMC's Porter Novelli, Edelman PR Worldwide and Grey Global's
APCO were among firms in the running for the business.
B-M's Richard Mintz,
who leads the U.S. PA practice, handles the account. Veteran
counselor Jim Lake, Katherine Krupka and Anne Prince also
pitched for B-M.
B-M and Marsteller Advertising
are responsible for communications program design, media
relations, retailer outreach, crisis communications, website
design, advertising and collateral materials. B-M's Direct
Impact unit will build a database and outreach program to
25,000 retailers, banks and small businesses.
Other Y&R units also
are involved in the work. Penn Schoen & Berland will
do research. Landor will provide brand consulting and design.
The Bravo Group, Kang & Lee and UniWorld will target
multicultural audiences. Y&R is a WPP Group unit.
GM's WU JOINS GE
General Electric has
named Judy Wu general manager-corporate advertising and
marketing communications effective Aug. 22. The 49-year-old
executive joins from General Motors, where she was executive
director for diversity and growth markets.
Wu will report to Beth
Comstock, GE's corporate VP-communications, and be responsible
for managing GE's global brand message.
Besides targeting GM's
outreach to ethnic markets, Wu played a key role in the
automaker's "Keep America Rolling" campaign that
it launched following Sept. 11 to help stimulate the economy.
Previously, Wu was senior
VP at DMB&B in Detroit, handling GM. She also worked
at Leo Burnett.
Heyman Assocs. handled the search for GE.
PR Worldwide now represents the Zionist Organization
of America as it follows its PR rep, Ronn Torossian, to
the New York firm from MWW Group, a Golin/Harris unit. Torossian
has close ties with Israel's Likud Government.
TAAFFE TAKES OVER H&K
Hill and Knowlton has
named Paul Taaffe, a 12-year chief executive for two of
the firm's overseas units, as chairman and CEO, replacing
Howard Paster, who has moved to parent WPP Group. Paster
is executive VP of PR/PA at WPP.
Taaffe, who will also
head H&K's worldwide executive committee, was named
CEO of the firm's United Kingdom operations in 1990, eventually
moving up to president of H&K Europe, Middle East and
Africa in 1994 and heading two of H&K's five regions.
He was previously a managing director for Shandwick Consultants.
Paster said he leaves
H&K in "the best of hands," adding that Taaffe
has been "a key player in the system" and is familiar
with the firm's operations.
Taaffe, a native Australian,
will remain based in H&K's New York office.
EDELMAN ASKS VENDORS TO BUY
Edelman PR Worldwide is asking its vendors to show their
support by taking ads out in the Sept. 23 issue of Advertising
Age which will have an advertising insert celebrating
the 50th anniversary of Edelman.
Alice Hogueisson, VP in Chicago, is coordinating the campaign.
CEO Richard Edelman, according to Hogueisson's e-mail, asked
her to woo the firm's "long standing and major vendors"
to buy ads in the "special insert illuminating the
rich history of Edelman." She wrote: "All of us
at Edelman are proud of our tradition and would like to
thank you in advance for your consideration and your loyalty
to our organization."
Edelman said some of the suppliers have been doing business
with the PR firm 20 to 50 years and "if they want to
advertise fine, and if they don't, there's no issue at all
Hogueisson helpfully includes rates for the insert. A
four color full-page ad goes for $17,671. A black and white
page goes for $12,674. The cheapest ads are 1/8 page ones
that are pegged at $5,555 (four color) and $2,295 (b&w).
Hogueisson copied Edelman marketing director, Derek Creevey.
Vendors can contact him for further details.
Ad Age publisher Rance Crain spoke at a July 11
Edelman 50th anniversary seminar in which he extolled PR
as the "closer medium."
Edition, August 14, 2002, Page 2
SAUDI ARABIA URGED TO DROP
Saudi Arabia should stop
its 'PR drivel' in the U.S., and flat out explain to the
American people that serious issues exist between the Kingdom
and the U.S., according to Khaled Al-Maeena, editor-in-chief
of Arab News, the Kingdom's English-language paper.
He urges Saudi Arabia
to "abandon those fancy public relations firms whose
own executives look at us unfavorably, but are doing the
job for the dollars."
Al-Maeena also is not
too keen on advertising. "Let us not be lured into
placing full-page advertisements in U.S. newspapers that
in the same edition write horrid untruths about us,"
he writes in an editorial Aug. 9.
is Saudi Arabia's PR firm. It receives $200K a month for
its work. Saudi Arabia's Embassy turned to Burson-Marsteller
immediately following the Sept. 11 attacks for image ads
expressing solidarity with the U.S. The WPP Group unit received
$2.7 million for producing and placing the ads.
Al-Maeena wants the Kingdom
to discard the PR drivel and "go for a straight shot."
He believes the country should devise its own media strategy.
He notes that many Saudis speak excellent English and are
ready to speak to the media about how the Kingdom is "a
land of peace and promoter of high values." He feels
it is "imperative that we stop tolerating the nonsense
that is being spread about us, and start using our own resources
to take control of our destiny."
Al-Maeena's piece follows
the uproar caused by a Rand report briefing to the Pentagon
recommending that the U.S. seize Saudi oil fields in the
event that the Kingdom fails to crack down on terrorism.
PR REMEMBERS 9/11
Eight PR firms have organized
to honor those lost on Sept. 11. The goal is to establish
Sept. 11 as a national day of helping others in need. David
Paine, PainePR CEO, is the director of the grassroots program
that aims for one million pledges by next year. Pledgers
promise to donate cash/goods or do volunteer work in memory
Patrice Tanaka & Co. and Peppercom (New York), Carter
Ryley Thomas (Richmond), Duffey Comms. (Atlanta), Leo Burnett
PR (Chicago), Padilla Speer Beardsley (Minneapolis) and
KVO/Fleishman-Hillard (Portland, Ore.) are members of the
group's founding committee.
Joann Killeen, president
of PR Society of America, is another committee member. Paine
said the member firms are using their media relations savvy
to promote the non-profit group. He expects the group's
membership will expand beyond the PR business as awareness
of the 9/11 organization grows.
The effort of onedayspay.org
is dedicated to the memory of Mark Bingham, the San Francisco
PR executive who died on United Flight 93 after trying to
wrestle control of the hijacked plane from the terrorists
while it was over Pennsylvania.
SPECTOR GETS $82K IN SUIT
An eight-member Essex
Cty., N.J., jury awarded $82,500 to PR firm Spector &
Assocs. Aug. 5 in its suit against ad agency Grafica after
hearing testimony for two weeks and deliberating for two
Spector, in a suit filed
May 2, 2000, accused Grafica of dumping it from the New
Jersey Lottery account, which they had both pitched and
won, and improperly hiring Mark Devaney, a Spector employee
who worked on the Lottery.
The verdict sheet handed
in by the jury to Judge Stephen Bernstein of New Jersey
Superior Court showed the jury voted 8-0 in agreeing to
the question, "Did the defendant, Grafica, breach its
agreement with plaintiff, Spector."
It voted 7-1 in answering
"No" to the question, "Did the plaintiff,
Spector, breach its agreement with defendant, Grafica?"
The jury then voted to
award $82,500 to Spector by a vote of 7-1. The question
posed was, "What amount of damages will fairly and
reasonably compensate plaintiff, Spector, for the losses
that arose from defendant, Grafica's, breach of the agreement?"
The PR firm had sought
$900,000 in damages.
Grafica maintained that
Spector was a subcontractor or "vendor" on the
account while Spector said there were numerous written references
to the PR firm as a partner and that it always considered
itself as at least on the same level as Grafica in pitching
Grafica and Spector had
jointly pitched the account for about four months until
March of 1999 when they won it. The contract called for
a $27,500 monthly retainer for PR for five years ($1.65
million) plus expenses.
Spector said that "vendors"
normally do not work for months pitching an account while
receiving no pay.
Debra Taeschler, president
of Grafica, said the jury "clearly decided against
awarding Spector the damages it sought, which is a victory
PR TAB FOR STADIUM TOPS $1
Zeppos & Assocs., a Milwaukee-based PR firm, was paid
more than $1 million to handle PR for the new Miller Park
baseball stadium since the project was started four and
a half years ago, according to the Milwaukee Journal
While board minutes show there was periodic concern over
the cost of Zeppos' PR services, Bob Trunzo, stadium district
board chairman, told the J-S: "Basically, we hired
the best firm that we felt was capable of handling challenging
issues. We're very happy with the work done by Zeppos."
Zeppos, who charges $220 an hour, told Murphy he did "99%"
of the work his company performed for the district. He said
the money represented "a small portion" of the
revenues for his firm, which does work for several companies,
including Miller Brewing, Ameritech, Krispy Kreme Doughnuts,
and Eli Lilly. The firm reported total fees in 2001 of $1,713,824
to O'Dwyer's Directory of PR Firms.
Edition, August 14, 2002, Page 3
HOW THE WASH.
POST COVERS HEALTH
a former political reporter for The Washington Post,
"loves" the health beat.
who had covered the political beat for many years, told
a U.S. Newswire-sponsored media workshop Aug. 6 in Washington,
D.C., that she appreciates the professionalism of healthcare
PR people who don't try to micro-manage the way political
PR pros do during campaigns.
one of the most "disturbing" things is health
groups who hold news conferences late in the afternoon to
give reporters little or no time to research and provide
context to a story.
described how the Post is organized to cover the
health field. Some of her key points were:
for the health beat works for the national desk and reports
to science editor Rob Stein.
the key writers in the group, David Brown and Susan Okie,
include: Rick Weiss (science-related topics); Mark Kaufman
(food, drugs and FDA); Shankar Vedantam (brain and development)
and Guy Gugliotta (specific assignments).
Tuesday special "Health" section has a separate
staff and is edited by Craig Stoltz. Much of the writing
is done by freelancers but reporters from the national desk
may contribute a story.
section is mostly soft news on diet and exercise and "news
you can use."
is looking for organizations to provide cell phone numbers
and after hours numbers of PR people. She also wants experts
who are comfortable talking to the press, and values organizations
that can find her members or even patients that are distributed
across the country and have first-hand knowledge of the
issue at hand.
are many editorial layers at the Post, Connolly cannot
promise when a story will run or where it will play or if
it will include pictures. She also reminds everyone that
reporters don't write headlines.
values sources that keep the relationship professional;
read the paper closely, and provide feedback directly to
the reporter rather than the editor.
reporters on the health beat are constantly checking with
each other and share or forward story ideas to more appropriate
reporters. The Post does a good job of making sure
multiple reporters or sections are not working on the same
story, she said.
big editor's meeting at the Post is about 10:30 a.m.
A second meeting takes place at 2 p.m. and the final meeting
is at about 6 p.m.
Sunday section stories are written and finished in time
for the "bulldog" edition Friday afternoons. This
means reporters must see the pitch in plenty of time to
write for that deadline.
2.0 magazine, San Francisco, has signed up veteran
technology journalist Rafe Needleman to pen a new column,
called "What's Next."
had left Red Herring magazine at the end of 2001-where
he wrote the "Catch of the Day" column-to start
an independent e-mail newsletter.
Beginning with the September issue, What's Next will appear
monthly in the print edition. A special online version will
run twice weekly on the Business 2.0 website (www.business2.com)
and will also be available as an e-mail newsletter.
In the new
column, Needleman will look at new technologies/companies
on the rise in today's business.
can query and pitch information to Needleman at [email protected].
is editor of Business 2.0, which is published by
The Fortune Group at Time Inc., at One California st., 9th
covers companies that produce and market prepainted
metals and/or coil coating, has been acquired from DM Publishing
by Philip Colaiacovo, the trade magazine's editor-in-chief.
plans to expand the magazine's coverage of service centers
and related coil processing operations. He will continue
to work closely with the National Coil Coating Assn.
editorial offices are located at 8 High Point, Cedar Grove,
NJ 07009. 973/571-7155; e-mail: [email protected].
magazine has been chosen to produce the Show Daily
for Global Gaming Expo, the industry's largest trade show
and conference, which will be held Sept. 17-19 at the Las
Vegas Convention Center.
Daily will appear each morning at the opening of G2E,
with a full schedule and preview of the day's events, recaps
of the previous day and highlights of the products, services
and happenings displayed at the exhibits.
is handling the paper at 702/248-1565; e-mail [email protected].
Sawa, the U.S. government's new 24-hour FM station
in the Middle East, is making a transition from an all-music
format to one that gives greater emphasis to programs on
U.S. policy and positions.
is to win over an audience that almost universally distrusts
U.S. policy. The station is targeting the under-30 audience
that makes up 60% of the Arab world.
third of the broadcasts could become informational-interviews,
discussions, call-in shows, and policy programming. Broadcasts
will be tailored to the distinct Arabic dialect of individual
Hard, a Lebanese-American, is Radio Sawa's news editor,
based in Washington, D.C.
news continued on next page)
Edition, August 14, 2002, Page 4
TOP DAYTIME PRODUCER
who is CNBC's EVP of business news, is taking a four-month
paid sabbatical from the cable network.
David Friend, who is executive producer of "SquawkBox,"
among other shows, will temporarily oversee the newsroom
and all its functions.
been in charge of CNBC's 5 a.m. to 8 p.m. daily coverage,
which has been losing viewers.
reported other executive producers will be leaving CNBC.
FINANCIAL PLANNING HIRES GARLAND
Eric Garland, who was previously senior editor at Money
magazine, is joining Financial Planning magazine
Pat Durner was named managing editor of FP, which is published
in New York by Thomson Media.
Garland, who has been writing on business and finance
issues for more than 20 years, worked as editorial director
of Adweek before moving to Money.
Durner previously worked for several other Thomson publications.
AMDUR RECRUITS FOR NY TIMES
Neil Amdur, 62, sports editor of The New York Times
since 1990, has been appointed senior editor for staffing/national
Howell Raines, executive editor, said Amdur's new job
is to identify reporting and editing candidates for all
sections of the Times.
Raines said Amdur will oversee a search for his own successor.
AJC NAMES MANAGING EDITOR/NEWS
Hank Klibanoff, 53, a deputy managing editor at The
Philadelphia Inquirer, was named managing editor/news
at The Atlanta Journal-Constitution.
He will oversee the content and presentation of the daily
and Sunday papers. He starts Oct. 1.
Klibanoff had been overseeing business, foreign, national,
metro and sports coverage as well as projects for the Inquirer,
where he has worked for the past 20 years.
James Mallory, 47, who has spent 14 years at the AJC,
most recently overseeing the metro and business news departments,
was promoted to managing editor/initiatives and operations,
where he will review the paper's suburban coverage and oversee
news personnel, budgeting and administration.
Both report to Julia Wallace, AJC's top editor.
SMARTMONEY NAMES FINN AS ED-IN-CHIEF
Edwin Finn Jr. was named chairman/editor-in-chief of SmartMoney,
a personal finance magazine published by Dow Jones and Hearst.
Finn, 47, who remains president/editor of Barron's,
a separate DJ publication, has replaced Peter Finch, previously
editor-in-chief of SmartMoney, who will become editor.
Robert Fritze, who was publisher, has left the magazine.
Ad pages at SmartMoney, which has a monthly circulation
of 810,000, have fallen 27% for the first half of 2002,
compared with the year-earlier period, after a decline of
33% for all of 2001.
ATLANTA INVESTORS START WOMEN'S
A new lifestyle magazine targeting 25 to 54-year-old,
upscale women in the Atlanta metro area is being started
by a group of investors, headed by J. Hardwick "Jack
"Morgan, 40, who is CEO/publisher.
Morgan said the first issue of Peach Magazine will
be published in November.
The 100-page, glossy-finish monthly will provide articles
about beauty and fashion, health and fitness, personal finance,
relationships, travel, family, home, shopping, entertainment
and careers for women. It also will profile a local woman
in each issue.
The magazine will be available at newsstands, hotels,
salons and spas for $3.50 an issue. It will have an initial
print run of 20,000 copies.
Morgan is currently interviewing candidates for at least
seven staff positions, including an editor and a managing
The magazine will be moving shortly to offices located
at 1795 Peachtree rd., Atlanta. Morgan can be reached at
YANKEE MAGAZINE GETS A FACELIFT
With its July/August 2002 number, Yankee Magazine
is introducing 15 new departments, a new design, and a new
logo and tagline in an effort to attract younger readers.
The new logo for the 67-year-old magazine now bears the
tagline "The Magazine of New England Living."
The 15 new columns range from monthly "House Plans"
and tips from "The New England Gardener" to "Dining
Out" restaurant reviews and "3 Questions, 3 Answers"-interviews
with famous New Englanders.
Yankee will keep its signature digest size.
Michael Carlton, who was previously at two other regional
publications, Southern Living and Coastal Living,
joined Yankee last October as editor, and Amy Traverso,
a former staff writer for Boston magazine, was named
food editor in June.
Traverso will expand the recipes section, and write a
new column starting with the November issue. She also will
oversee the Yankee test kitchen, and coordinates the "Good
Food" section on YankeeMagazine.com,
including the "Monthly Menu" database.
Yankee Magazine's office is located at 1121 Main st.,
P.O. Box 520, Dublin, NH 03444. 603/ 563-8111.
E-mail is the preferred way to pitch Carlton. His address
is [email protected].
Edition, August 14, 2002, Page 7
OMC REVEALS SOME
living up to its promise of being more "transparent,"
broke a tradition Aug. 6 by unveiling a list of 17 acquisitions
in the first half as part of its second quarter report.
Still unavailable is the list of 73 acquisitions that it
made in 2001 and 2000.
on which $312 million was spent in the first half, accounted
for 84% of OMC's growth in revenues in the second quarter.
from acquisitions totaled $142.9M in Q2 and $233.6M in the
first half, accounting for 77% of revenue gains in the half.
Total potential earnout payments are estimated at $418M
as of June 30.
include a Portuguese print broker; a company that allows
consumers to test new cars; a fund-raising consultant; an
investigative firm headed by two former FBI agents; a company
that designs auto dealership facilities and materials; a
product merchandising firm, and a number of ad, PR and related
businesses (list at end of this story).
from acquisitions included $122.8M from the U.S. and $20.1M
debt is $2.72B (2.2 times earnings before interest, taxes,
depreciation and amortization) vs. a 1.9 ratio a year ago.
PR was the
only major area showing a loss among four categories broken
out by OMC.
PR is down
10.7% in Q2 (-10.1% in the first half) while advertising
is up 9% in Q2; specialty services up 26.7%, and customer
relationship management up 15%.
Wren said there has been no meaningful recovery in advertising
thus far and that it will be "tough going for the remainder
of the year."
OMC is concentrating
on making acquisitions that are "small and purposeful"
and will spend $625 million to $675M on acquisitions this
year, said CFO Randy Weisenburger.
acquisitions OMC revealed are:
Entertainment, entertainment marketing (h.q. city not provided).
Co., Dallas, advertising, PR, political media and direct
Marketing Consultants, which allows consumers to sample
new models in "Learn and Drive" events; also offers
wholesale and retail sales training.
Howes, Washington, D.C., and New York, public policy and
Our World, which helps not-for-profit and corp. clients
"achieve their goals through philanthropy."
de Publicidade, Portuguese print broker.
Forum, Dayton, architectural and environmental design firm
mostly working for the automotive sector.
Harmel & Partners, multicultural agency.
Comms., Boston, high-tech PR firm.
Kemp & Partners, Manchester, U.K., direct marketing.
In-Store, product merchandising, sales training, in-store
advertising and related services.
San Francisco, "investigative consulting firm"
founded by two former FBI agents.
Group, Phila., direct response & advertising.
large media agency in Norway.
Munich, PR firm in Bavarian region.
Group, Poznan, Poland, marketing.
Mine, Paris, online content supplier.
Czech Republic, designs and implements training programs
CMP MEDIA CUT STAFFERS
Media, London, has cut 500 more staffers across all businesses,
including a reduction of at least 30 percent at PR Newswire,
in New York, and CMP Media and CMP Information, in Manhasset,
Clive Hollick said the reductions are the result of weak
revenues, reduced profits and margins at PRN, and a recorded
loss at CMP, which had a 38% drop in revenues.
PRN fell 21% to $88.4 million in the first six months of
this year compared with the same period in 2001. Profits
fell 43% to $19 million.
A PRN spokesperson
declined to comment on the exact number of job cuts at the
financial report for the six months ended June 30 said "continuing
sluggishness in the U.S. economy and greatly reduced mergers
and acquisitions and IPO activity have caused a downturn
in the volume of releases issued by PR Newswire's customers,
especially those which are discretionary in nature."
message volume was 13.2% below the same period last year,
in line with the 14% decline for the full year in 2001.
The turmoil in the world's stock markets has led corporations
to be more publicity adverse than normal," the report
have also chosen lower-priced news distribution options
causing a reduction in average revenue per message of 5.6%,
the report said. "More rigorous disclosure practices
look set to increase the length of earnings releases,"
the report said. (PRN charges a fee to distribute press
releases; the more pages, the higher the fee.)
employs about 1,700 worldwide, down from a high of 2,700
in April 2001.
KOHLER GIVES GC BIOTERRORISM
Plumbing manufacturer Kohler Co. has given Global Communicators
a 10-month, $134,000 government/media relations contract
for its new Kohler Mobile Plumbing Systems (KMPS) division.
The new division grew out of Kohler's assistance to the
rescue and recovery teams at the World Trade Center site.
Its mobile shower unit was used by firefighters, policemen,
rescue workers and volunteers for more than six months at
GC CEO Jim Harff said the Sept. 11th terrorist attacks
demonstrated a major national need for semi-trailer mobile
plumbing facilities for use at bioterrorism decontamination
sites, natural disasters, etc.
Edition, August 14, 2002, Page 8
story of Edelman PR (p. one) asking vendors to advertise
in the Sept. 23 Advertising Age, which will
also have a multi-page ad by Edelman for its 50th anniversary,
says a lot about the current state of PR.
Why is a PR firm, which
supposedly communicates mainly through editorial time and
space, taking a huge ad out for itself and urging others
This story drew more than
a dozen comments on the O'Dwyer website, almost all of them
negative. PR pros feel Edelman is improperly hitting on
suppliers. We agree. Edelman has plenty of good materials
for editorial columns if it will supply it.
Its decision to celebrate
its anniversary by heaping praise on itself and reaping
praise from clients and suppliers does not make for good
Better would be making
Dan and Richard Edelman available for interviews in which
serious questions are tackled, thus showing PR's intellectual
They could discuss the
disastrous U.S. Government PR campaign aimed at Islamic
nations; the takeover of the bulk of the PR counseling business
by ad conglomerates; Edelman's own distasteful experience
in selling part of itself to Interpublic; the ups and downs
of Edelman over the years; the impact of high health insurance
costs on PR firms (forcing them to favor young, single people);
the impact of the web on PR; why no major PR firm (including
Edelman) has anyone fulltime on house PR; the silence of
PR's trade organization, PRSA; PRSA's stonewalling on its
finances; IR's role in spreading confusing "pro forma"
Instead of parties and
ads, Edelman should be doing something intellectual. It
might sponsor panels of editors on the above topics.
met its goals of 10% growth in revenues and profits for
Q2 but the bulk of the gains came from acquisitions.
For instance, revenue
growth is presented as 9.7% with internal growth making
up 1.5% of this and growth from acquisitions making up 8.2%.
An OMC press release,
to be understandable by the layperson, should have read:
"OMC's revenues gained 9.7% or $168.5 million in the
second quarter but 85% of this gain was due to acquisitions.
We spent $312M on acquisitions in the first half and added
$233M in revenues." That OMC is spending more on acquisitions
than the revenues and profits produced is one big reason
for its $2.72 billion debt.
The $312M figure includes
acquisition costs from previous periods but it indicates
the proportion of OMC's growth that comes from acquisitions.
Morgan Stanley said the
8.2% growth via acquisitions was "nearly triple"the
3.5% gain in this category that MS expected. MS notes that
OMC has been spending about $800M a year on acquisitions
with $625-675M expected for 2002. This means a total of
$3 billion being spent on purchases in the four years of
1999-2002 when OMC's revenues totaled only $6.8B forall
Analysts told us OMC
would have no "organic" growth at all in Q2 if
it followed the practice of the other ad giants which do
not count growth from acquisitions until a year after the
deal is made.
OMC teleconference Aug. 6 again showed the feebleness of
analyst questions. The call was limited to an hour
but Weisenburger wasted about 10 minutes reciting figures
the analysts already had. Some analysts were thus not able
to get on the call. Reporters were barred from asking questions.
No balance sheet was provided although the large majority
of companies provide them with their earnings reports. No
complaint is ever made about this. There was no detailed
discussion of OMC's debt situation which will probably include
re-financing $1.75B in zero-bonds.
No analysts dared bring
up the subject of the nearly 20 stockholder lawsuits vs.
OMC. For the first time, OMC gave a list of its recent acquisitions,
some of them far afield from ad/PR including a print broker
in Portugal; a private-eye firm set up by two former FBI
agents,and a company that lets consumers test new cars.
Costs of the acquisitions were missing as well as employee
totals. In five instances, no h.q. city was given.
victory of the Spector PR firm in its suit vs. its former
ad agency co-bidder Grafica (p. two) is a victory
for PR. Grafica had portrayed Spector as a mere "vendor"
subservient to advertising and working months for nothing
in hopes of sharing the multi-million dollar New Jersey
Lottery account. Messenger services, graphic artists, etc.,
and other "vendors" do not normally work for nothing.
The court decision helps to establish PR as at least equal
hope the naming of Paul Taaffe as head of Hill and Knowlton
to succeed Howard Paster will presage reform at H&K.
The firm sunk into its own shell in the past ten years and
lost its high gloss. Its net fee and employee figures lack
proofs and are suspect. The Council of PR Firms months ago
made an error of 1,008 in reporting the employees of H&K
but neither H&K nor the CPRF knew about this until we
told them. H&K lists 659 people in six U.S. cities and
178 in "other U.S." Where are these people and
whom are they working for? H&K claims 1,288 workers
abroad. What cities are they in and what company names are
on their paychecks? Parent WPP'sfinancial reports say that
PR revenues include fees from"advertising and media
investment management and branding and identity, healthcare
and specialist communications."