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Internet
Edition, August 9, 2006, Page 1 |
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CALTRANS
ROLLS OUT $15M POLLUTION PACT.
Californias
Dept. of Transportation has issued an RFP for a storm water
public education campaign.
Caltrans
has budgeted $15M for the marketing communications campaign
to build upon the current Dont Trash California
effort.
The
programs goal is to reduce the amount of storm water
pollutants, including litter that enters highway storm drain
systems. The scope of the work could include training Caltrans
staffers, and organizing special events.
The
RFP calls for mandatory participation in at least four events
such as the California State Fair, Los Angeles County Fair,
Mid-State Fair, San Diego County Fair and Alameda County
Fair.
Caltrans
is looking to hire a firm that has managed at least five
statewide campaigns in the Golden State with budgets of
not less than $3M.
Proposals
are due Aug. 30. Oral interviews have been tentatively set
for the week of Sept. 11. The contract is expected to be
awarded Nov. 13. Work begins Dec. 15.
Liz
Salinas is the contract analyst. She is at 916/227-6835
or [email protected].
RENO TRADES H&K FOR TEXT
100.
Tom Reno is the latest
executive to exit Hill & Knowlton as the former general
manager of its flagship New York office takes the president/North
America post at Text 100. He also is in charge of Text 100s
global corporate communications practice.
Reno joined H&K in
March `04 from GCI Group, where he served as president of
its New York office.
Previously, Reno headed
Makovsky & Co.s IR group, served as managing director
at Citigate Communications/New York, and headed corporate
communications at Huberman, Margaretten & Straus.
Judi Mackey, who headed
H&Ks corporate and financial group, shifted to
Lazard as senior VP/director of communications in July.
Paul Oestreicher, H&Ks
healthcare chief, also departed last month. He now heads
Zeno Groups health practice.
WEISKOPF MOVES TO WELLS FARGO.
David Weiskopf has been
named VP-communications of Wells Fargos consumer credit
group in San Francisco. He previously worked as VP-corporate
communications at Chiron. Weiskopf also held posts at Ketchum
(senior VP) and Weber Shandwick (VP).
WPP ACQUIRES PSI.
WPP Group has Public Strategies
Inc., the well-connected public affairs firm that was founded
by Jack Martin, the executive assistant to former Texas
Senator and VP nominee Lloyd Bentsen, in 1988.
Mark McKinnon, President
Bushs chief media advisor for the `00 and `04 campaigns
is vice chairman of PSI, which also counts ex-Texas Governor
Ann Richards as an advisor.
WPP Group CEO Martin Sorrell
was attracted to PSI because it deals with clients at the
highest levels. Martins Fifth Seat philosophy
was developed because he saw CEOs and their boards turning
to lawyers, accountants, investment bankers and management
consultants for advice. He positions PSI as the fifth seat
at the management table.
Martin said in a statement
he had many buyout offers during the past years. He accepted
WPPs bid because it allows our firm to maintain
its independence, provides clients with additional resources
and employees with extensive professional opportunities.
PSI has advised Bridgestone/Firestone,
Dell, Diebold Election Systems and Perot Systems. It has
175 staffers in 15 U.S. cities and offices in Mexico City
and London.
New Yorks AdMedia
Partners counseled PSI on the deal.
JUDGE TOSSES DOWIES
SUIT.
A U.S. District Court
threw out former Fleishman-Hillard executive Doug Dowies
wrongful termination suit. Judge Margaret Morrow
determined that no reasonable jury would conclude
that F-H didnt have good cause to terminate the former
head of its Los Angeles office.
Dowie, who was convicted
of bilking taxpayers out of $300K, claims that he was sacrificed
as a scapegoat by his former employer. He believes he was
bounced by the Omnicom unit to cover up illegal campaign
donations to Los Angeles officials.
SIMONETTI TAKES GMAC REINS.
Toni Simonetti, previously
executive director of media relations, financial communications
and public policy communications for General Motors, as
well as VP of communications for GMAC, is now the chief
communications officer for the $300 billion financial services
company.
Simonetti had been transitioning
into her new role since January. She will be based in New
York where she has worked for more than a decade with business,
financial, trade, international and general media.
The 49-year-old native
of Detroit will serve as VP of global communications, reporting
to GMAC CEO Eric Feldstein.
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NIEROB
IS IN GIBSONS CORNERAGAIN.
Alan
Nierob, Mel Gibsons long-time publicist, is front
and center in the aftermath of the actors drunken
driving arrest and anti-Semitic outburst.
The
Rogers and Cowan veteran told the Associated Press that
Gibson has entered an ongoing program of recovery,
and is fighting for his life.
Gibsons
initial public apology for his remarks did not build much
sympathy for the actor. Abraham Foxman, national director
of the Anti-Defamation League called the apology unremorseful
and insufficient and fails to go to the essence
of his bigotry and his anti-Semitism.
Gibsons
tirade finally reveals his true self and shows that
his protestations during the debate over his film The Passion
of the Christ that he is such a tolerant, loving person
were a sham, according to Foxman.
The
actor apologized again on Aug. 1, asking for forgiveness
of Jews and for a one-on-one meeting with Jewish leaders.
Foxman
was happy that Gibson finally owned up to what he said.
He agreed to meet with the actor once he finished rehab
to help him get rid of his other addiction, which
is prejudice.
Walt
Disney Co. is the first to drop the ax on Gibson for his
actions. Its ABC TV unit has pulled out of a Holocaust miniseries
that it was developing with Gibsons production company,
Ikon Productions.
ABC
unit may go ahead with the project with a different producer.
The problem, according to a report in TV Guide, is
that Icon wants to pursue the story called Flory:
Survival in the Valley of Death.
The
four-hour drama is about Flory Van Beek, a Dutch Jew who
was hidden from the Nazis by a gentile family.
It
is a great story and it should be told independent of Mel
Gibsons views, Quinn Taylor, head of ABCs
movies and miniseries unit, told TVG.
Jaffe/Braunstein
Films, which had been working with Icon, may continue with
the project.
DCI GROUP TIED TO ANTI-GORE
SPOOF.
A YouTube.com
animated video spoofing former Vice President Al Gores
global warming movie, An Inconvenient Truth,
has been tied to Republican PR firm, DCI Group.
The video called Al
Gores Penguin Army was created by Toutsmith,
who identifies himself in a YouTube profile as a 29-year-old
Beverly Hills resident.
The Wall Street Journal
sent an e-mail to Toutsmith, but he would not tell the paper
why he made the video that has been viewed by nearly 60,000
viewers.
The Journal traced Toutsmiths
Yahoo account to a computer registered to DCI. Matt Triaca,
a spokesperson at the firm, told the Journal the firm does
not discuss client work.
DCI represents ExxonMobil,
a leader in the effort to discredit global warming front.
The energy giant denies that it had any role in the anti-Gore
video.
The firm runs TCSDaily.com,
an online journal of its Tech Central Station operation.
The conservative site says it stands for free markets and
open societies. It is sponsored by ExxonMobil, General Motors,
American Beverage Assn., Merck, McDonalds, Freddie Mac and
PhRMA.
F-H REPS CAYMAN ISLANDS.
Fleishman-Hillard has
a $520K job to represent the Cayman Islands in connection
with the U.S. probe into offshore financial institutions,
according to a contract dated March 14, 06. (The Cayman
Islands selected F-H for public/media relations, government
relations and lobbying services in January following
an RFP process, Eli Neusner, VP at the firm told ODwyers.)
The Permanent Subcommittee
on Investigation of the Senate Committee on Homeland Security
and Government Affairs issued a report on Aug. 1 called
Offshore Abuses: The Enablers, The Tools & Offshore
Secrecy about the use of overseas havens, such as
the Cayman Islands and the Isle of Man, to dodge U.S. taxes.
The report estimates that
corporations and wealthy Americans illegally avoid payment
of $40B to $70B each year through the use of offshore
tax schemes. It noted that offshore tax haven
jurisdictions are a black box to hide assets,
and transactions from the Internal Revenue Service, other
U.S. regulators and law enforcement. The Senate hearings
began in `01, and more are planned.
The new Cayman Islands
offshore financial account is based in F-Hs London
office. The work is supported by F-H offices in Washington,
New York and Brussels.
Julie Harris, director
of F-H/London is in charge. Her counterpart at the Cayman
Islands Portfolio of Finance & Economics is Ted
Bravakis, director of its PR unit.
BKSH LAUNCHES VALUES
DRIVE.
Burson-Marstellers
BKSH & Assocs. is representing the non-profit and non-religious
Values First group on federal initiatives regarding character
education.
VF was founded in `93
by the Peter N. G. Schwartz Foundation to promote basic
universal values in public and private elementary
schools.
It believes the infusion
of values (responsibility, honesty, hard work, fairness
and concern for others) into the nations schools will
cultivate better leaders for tomorrow.
BKSH chairman Charlie
Black, former advisor to Presidents Reagan and Bush I, leads
the lobbying team that includes Rich Meade (ex-chief of
staff for the House Budget Committee), Kristin Calabrese
(ex-aide to Rep. James Walsh) and Jeffrey Weiss (a veteran
of B-M and Weber Shandwick).
LEVINE OPENS 5W ISRAEL.
Charley Levine, who had
headed Ruder Finn Israel since `97, is opening 5W Public
Relations first overseas shop in the Tel Aviv area.
The Texas native, who
left RF earlier this year, moved to Israel nearly three
decades ago. He sold his CLC firm to RF after a 16-year
run.
Levine has counseled General
Electric, Bank of America, Israels Prime Minister
Ehud Olmert, Arnold Schwarzenegger, Al Gore, Israel Aircraft
Industries and Pfizer.
5W CEO Ronn Torossian
said his decision to open in Israel when the company
faces external attack emphasizes my belief in the tremendous
potential represented by Israel.
Levines title is
managing director of both 5W Israel and international operations.
New York-based 5W, which billed $5M in `05, will add a London
office next month.
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MEDIA
NEWS |
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ZIFF
DAVIS PUT ON AUCTION BLOCK.
Ziff
Davis has hired Evercore Partners and Lehman Brothers to
explore strategic options including the sale or partial
sale of the company that owns PC Magazine and CIO Insight
among other properties.
ZD
has been stepping up its online presence as evidenced by
a 49 percent rise in Internet revenues for the second-quarter
and a six percent drop in print revenues (ZD shut Sync
and Extreme Tech magazines.)
CEO
Robert Callahan said the company hired financial advisors
due to the heightened interest in our heritage and
emerging businesses. ZD has been using its print
brands to spawn new and creative line extensions.
The
company posted a three percent decline in first-half revenues
to $85M. Its operating loss widened to $5.5M from $3.1M.
TIME WARNER DECIDES TO GIVE
AOL AWAY.
Time Warner has decided
to give AOL service away in a bid to generate ad revenues
for the faltering online business. The company will slash
5,000 jobs at AOL. That is a quarter of its payroll.
The service will be free
to anybody with a broadband Internet connection. Those offerings
include e-mail, instant messaging, local phone number with
unlimited calls and various safety features.
AOL will continue to charge
$25.90 a month for dial-up customers.
The AOL Network receives
more than 100M unique visitors a month. AOL CEO Jonathan
Miller sees the opportunity to deepen relationships with
that base.
While AOLs subscriber
base has taken a hit, the units ad revenues were up
40 percent in the second-quarter to $450M, according to
Time Warner.
TIME OUT NEW YORK GOES BROADBAND.
Time Out New York,
the where-to-go, what-to-do weekly, has unveiled
a broadband video channel. The channel features 200 short
video clips that consist of information about museums, concerts,
bars, restaurants and other attractions. The clips are hosted
by staffers.
The sponsored videos feature
a 15-second ad.
The magazine in November
launched a video on demand service on Time Warner Cable
in New York.
CNN UNVEILS CITIZEN JOURNO
SITE.
CNN is rolling out CNN
Exchange, a website that allows users to upload their pictures
and stories of breaking news.
Staffers will vet all
incoming material. Approved material will be distributed
on CNN platforms such as CNN Headline News and CNN Radio.
The
nations broadcasters are committing $300M in
airtime space for PSAs to promote the need of parents to
control what their children watch on the tube. Former Motion
Picture Assn. of America leader Jack Valenti is coordinating
the effort designed to head off governmental regulation.
NATOLI EXITS PHILLY PAPERS.
Joe Natoli, publisher
of the Philadelphia Inquirer and Philadelphia
Daily News, is returning to Florida to take the CFO
post at the University of Miami.
He had headed the former
Knight Ridder papers since `04. Previously, he spent more
than two decades at the Miami Herald, another KR
property.
Brian Tierney, the former
ad/PR man who led a buyout group that purchased the Philadelphia
papers from McClatchy Co., will now oversee the editorial
units of the papers.
Tierney has promised not
to interfere in coverage.
There is no immediate
plan to name a successor to Natoli.
NEW YORK OBSERVER IS SOLDFINALLY.
The New York Observer
has been acquired by 25-year-old Jared Kushner, the son
of an imprisoned New Jersey real estate developer, for $10M.
Arthur Carter, NYO publisher,
will retain a minority stake in the political weekly. He
had been trying to sell the paper to a group headed by Robert
DeNiro.
Kushner promises not to interfere in the editorial content
of the paper.
Editor Peter Kaplan says
Kushner plans to step up marketing and expand its online
offerings.
He told the New York Times that Kushners 25-ness
is a huge asset because he is not weighed down
by the debris of conventional wisdom. Kaplan says
Kushner exists in the world that is about to be.
Charles Kushner was sentenced
last year to two years in prison for tax evasion, witness
tampering and illegal campaign donations.
The NYO is losing about
$2M a year.
MARIE CLAIRE SLAPS SIMPSON.
Marie Claire is
giving expanded space for its August letters section to
accommodate the avalanche of complaints that it received
over July cover girl Ashlee Simpson who talked about the
joys of natural beauty. It turns out that Simpson got a
nose job.
MC editor Joanna Coles,
who took over for Lesley Jane Seymour, agrees with the readers.
The August number is her first issue.
Coles, a former correspondent
for The Times of London and The Guardian,
promises a more serious magazine. She believes MC lost it
way under intense pressure to compete with celebrity mags.
NEW SARASOTA MAG NAMES EDITOR.
Sarasota Homes &
Lifestyles, which debuts in November, has named Candice
Mutschler editor. She is the former editor of LWR Life
and managing editor of Gulf Coast Living.
The new magazine from
Palm Beach Media Group is aimed at house-proud readers.
Each issue is to cover real homes and real people
showcasing their personal styles.
PBMG is also launching
home and lifestyle magazines in Palm Beach and Boca Raton.
(Media
news continued on next page)
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MEDIA
NEWS/CONTINUED
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CBS
NEWS SLATES FREE SPEECH SLOT.
CBS
News plans to run a regular feature called Free Speech
when Katie Couric becomes anchor of the evening news in
September.
The
segment will showcase people from a wide and diverse
group talking about the issues of the day.
It
is designed to foster a robust but civil debate, which is
in sharp contrast to the shouting match fare
that is a hallmark of some political shows on cable TV.
Those
FS voices initially will be selected by members of the CBS
News staff, but may eventually include people that were
pitched by PR firms, according to Rome Hartman, executive
producer of the Evening News, who was interviewed
by Public Eye, the CBS News blog.
SUN-TIMES TAKES CENTER STAGE.
The Sun-Times Group has
acquired CenterstageChicago.com,
the online guide to the citys clubs, restaurants,
concert halls and theaters. Visitors to the site may also
buy concert tickets or book hotel reservations.
Founded a decade ago,
the site calls itself a guide by Chicago for Chicago.
The information is compiled by a team of 40 freelancers
and by people visiting the site.
Fred Lebolt, VP of new
media at S-TG, said the move is part of the plan to provide
all the information residents want and need to live their
lives.
S-TG, publisher of the
Chicago Sun-Times and community papers, is the former
Hollinger International.
Kekst & Co. does its
PR.
HEARST DROPS MAG SUB CARDS.
Hearst Corp. is dropping
subscription cards from the September pages of House
Beautiful, O At Home, Redbook and Weekend
in a $2M deal cut with Philips Electronics.
The magazines will run
a two-page Philips ad with the tagline Simplicity
is not having subscription cards fall out of your magazine.
Subscription cards generate
12 percent of the magazine industrys revenues, down
from 20 percent a few years ago, according to the Wall
Street Journal. The Internet has picked up that slack.
GOOGLE PAYS AP FOR NEWS.
Google has agreed to pay
the Associated Press for selected content of its stories
and photos. Terms were not disclosed. The AP material will
be part of a new service that compliments Google News.
Agence France Presse has
sued Google, charging that the use of its material on GN
is a violation of copyright law. It wants $17.5M in damages.
Google maintains it is
covered under the fair use protections of the
law.
BRIEF ____________________
Playboy
Enterprises is setting up an online poker site during
the fourth-quarter.
The site will be run by
Oceania Caribe Licensing, a Netherlands Antilles outfit
that has licensed Playboys brand. The site will not
accept bets from the U.S., where online gambling is illegal.
PLACEMENT TIPS ________________
Richard
Levick, CEO of Levick Strategic Communications in
Washington, D.C., says between 50% and 75% of all media
interviews dont result in the person who is being
interviewed getting directly quoted.
If the goal is to
convey your personal credibility or expertise in your field
or topic to a key audience and you havent been quoted,
you may feel as though youve wasted your time,
he said.
Here are some of Levicks
points to remember when trying to get quoted in the press:
Be brief. Whether
youre creating broadcast sound bites or printed statements,
most quotes take only 5-10 seconds to say.
Introduce conflict.
A news story with an adversarial component will always trump
one without any conflict. Think about how you can give the
reporter enough conflict to get yourself quoted without
gratuitously picking a fight.
Start a relationship.
Every interview with a reporter is an opportunity to become
a trusted source for future stories, which means that if
you dont get quoted this time, there will most likely
be a next time.
Correct yourself.
Reporters have a vested interest in your looking smart.
Stumbles and fumbles with your words rarely appear in print,
so if you make a mistake, dont hesitate to back up
and start over again. Your corrected comment is the one
that will be quoted.
Know the rules.
In some circumstances, providing off-the-record and not-for-attribution
background information can serve your interests in the press.
But be sure to carefully distinguish between what the reporter
can and cannot attribute to you.
There are basic, intermediate,
and advanced best practices. Learn the basic ones first
and then you can begin to prepare for post-graduate lessons
on how to make the media bear dance to your tune.
PEOPLE ________________
Katherine
Rizzuto, executive beauty editor at Vogue,
has been named publisher of the resurrected in `07 Radar.
She previously held that post at Hearst Corp.s Marie
Claire.
Richard Johnson,
editor of the New York Posts Page Six has had
his drunken driving case adjourned to Oct. 12.
Declan Moore
has been upped to international publisher of National
Geographic. He had served as general manager. NG has
a circulation of more than one million.
Colman Andrews,
a co-founder of Saveur, is going to write for Gourmet.
Hell be writing about trends in the restaurant business.
Andrews served as editor-in-chief at Saveur for a dozen
years.
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NEWS
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MWW
GOES TO SCHOOL.
MWW
Group has launched CampusDialogue, a practice that will
handle education-related marketing communications. The unit,
according to CEO Michael Kempner, will help universities
and other educational institutions attract new students/faculty,
commercialize new technologies and promote public policy
initiatives.
Polytechnic
University and Global Education and Learning Communication
are charter clients of the new practice.
Brooklyns
Polytechnic, founded in 1854, is the nations second
oldest private engineering university. It will receive PR,
brand extension and communications support from CampusDialogue.
GELC
is a non-profit organization founded by Sun Microsystems
in 2004 to address the global need for cost-effective, online
curricula as a way to move learning into the Participation
Age.
H&K GETS RESULT.
Hill & Knowlton Canada,
which is owned by WPP Group, has acquired Result Inc., Calgarys
oldest corporate communications firm.
The deal creates a new
H&K entity that offers investor relations consulting,
marketing materials and annual/financial report writing
services.
Result was founded in
1981 to offer specialized corporate communications services.
It has clients in the oil and gas business, and prides itself
on corporate story telling.
Jane Savidant is president
of Result. Michael Coates is CEO of H&K Canada.
TEXT 100 CELEBRATES 25TH BIRTHDAY.
Text 100 kicked off its
25th anniversary by opening for business in Malaysia. The
Kuala Lumpur office is Texts 13th office in the Asia
Pacific region, where it has about 200 staffers.
Text 100, a unit of Next
Fifteen Communications Group, has recruited Yeow Mei Ling
from Perception Management to run the Malaysian operation.
She is a veteran of Edelman and has a background in mergers
& acquisitions.
RUBENSTEIN EXPANDS IN NYC.
Rubenstein Associates
has expanded at its 1345 6th Ave. headquarters, adding 12,000
sq. ft. of space. The firm now occupies 60,000 square ft.
on two contiguous floors.
Howard Rubensteins
firm now has a staff of about 200 people serving 450 accounts.
New York Yankees, News Corp., Time, Tribeca Film
Festival, Silverstein Properties, Paramount Pictures and
Tishman Speyer Properties are on the roster.
Our business
is more active than ever, said Rubenstein. The expansion
reflects the growth of our business.
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NEW
ACCOUNTS |
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New York
Area
Weber Shandwick,
NewYork/Thorium Power for business-to-business, PR and corporate
reputation work. TP collaborates with Russias leading
nuclear research center to develop the most efficient means
of disposing weapons-grade and reactor grade plutonium while
converting nuclear energy into electricity for peaceful
purposes.
KCSA Worldwide,
New York/AdPack USA, an out-of-home marketing company specializing
in intercept marketing and place-based advertising
though its promotional lines of facial tissues, towelettes
and wet towels. AdPack is part of Japans Itochu International,
a global Fortune 500 company.
Alan Taylor
Communications, New
York/Staples Invention Quest, a search for the next great
office product to make life easier. The contest continues
into early `07. ATC has worked on Staples programs
since `00. It launched and promoted its iconic Easy Button.
Ogan/Dallal
Assocs., New York/Groupe
JS International and the forthcoming Badgley Mischka Bridesmaids
and Badgley Mischka Collection; innerwear designer Flora
Nikrooz, and Hamptons Hound luxury canine clothing, furniture
and accessories.
Goldstein Communications,
New York/Moving Pictures Magazine and its parent
company, Maitland Primrose Group.
East
Strategic
Communications Group, Silver Spring, Md./DataPath,
a global solution provider for mission-critical communications.
The Pentagon is DataPaths biggest customer though
the company is expanding into the emergency response and
disaster recovery business lines.
Swardlick
Marketing Group, Portland, Me./Oakhurst Dairy to
plot expansion throughout the New England region.
Elite
Financial Communications, Lake Mary, Fla./Pauslon
Capital, Most Home Corp., MedeFile International, OnScreen
Technologies, and Chemokine Therapeutics. Each for IR.
Midwest
Rein
Nomm & Assocs., Plymouth, Mi./IMRA America, a
company that develops ultrafast fiber lasers.
Carmichael
Lynch Spong, Minneapolis/Therma-Tru, maker of fiberglass
and steel residential entry and patio door systems. The
Interpublic unit will create awareness and build demand
for the Maumee, Ohio-based client.
Scheibel
Halaska, Milwaukee/Alen Corp., a manufacturer of
air purifiers, air conditioners and other home electronics
items.
West
CTA
Public Relations, Louisville, Colo./Isonics Corp.
for annual report. Isonics is involved in the homeland security,
semiconductor and life sciences sectors.
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NEWS
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OTSP
HAULS IN CASH INFUSION.
Sally
Jewett and Stacie Hunt, leaders of On the Scene Productions,
have recapitalized the Los Angeles-based broadcast publicity
outfit, receiving investment funding from Seacoast Capital
and Socius Capital.
After
22 years of growing OTSP solely through our own resources,
we are thrilled to have investors who offer seasoned business
acumen and capital to help us take advantage of the extraordinary
opportunities that we believe will be available over the
next five years, Jewett said in a statement.
Jeffrey
Lamb of Seacoast becomes CEO of the newly formed OTSP Holdings
Inc. Socius Dave Woodward will join the board of directors.
Jewett
will remain as president, Hunt as executive VP. Other managers
that have personally invested in OTSP include Paul Torrey,
president, sales and new product development; Maya Burghardt,
senior VP and general manager, Los Angeles; Jim Bowling,
senior VP and creative director, Los Angeles; and Michael
Farr, senior VP.
NEWSMARKET TEAMS
WITH B-M.
NewsMarket,
an online platform for video news, is creating a customized
proprietary digital capability for Burson-Marsteller.
The
partners say this is the first time that a PR firm will
offer a comprehensive, integrated strategic counsel
capability with a digital content management and distribution
platform that will enable turn-key execution for clients.
BOND BONDS WITH
WESTGLEN.
Clif
Bond has joined West Glen Communications as director of
broadcast services in its New York office.
He
spent 11 years at ABC Sports Radio, including seven as operations
manager responsible for 4,600 affiliates and 320M million
listeners a week.
In
`01, Bond won an Edward R. Murrow Award for a piece on high
school basketball players entering the NBA draft.
BRIEFS _____________________
Lou Thompson
joins PR Newswires disclosure advisory board in September
when he relinquishes the CEO post at the National Investor
Relations Institute. The board tackles issues such as earnings
guidance and non-financial reporting.
George
Velez, a General
Motors executive, has been named chair of the U.S. Council
for International Businesss marketing and advertising
committee. He succeeds John
Manfredi,
who was senior VP, corporate affairs at the Gillette unit
of Procter & Gamble.
D
S Simon Productions celebrated
its 20th anniversary on the Fourth of July. Doug
Simon marvels
at the technologies that werent around when he started
the broadcast publicity shop.
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PEOPLE |
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Joined
Pat
Cox, former president of the European Parliament
and managing partner of European Integration Solutions,
to APCO Worldwide as senior counselor to its international
advisory committee. The Irishman was awarded the title of
commander of the order of legion by France for his work
on behalf of European integration.
Dan
Gurley, founder of the Caledonian Group and national
field director for the Republican National Committee in
`04 to Davies. Sara
Costin joins Davies from Chandler Chicco Agency.
Joanne Thornton
leaves Tenet Healthcare after an eight-year stint to take
a post at the Santa Barbara-based shop.
Jessica
OMahony, who worked at Ketchum/Atlanta on the
Home Depot, Cingular Wireless and Georgia-Pacific Building
Products businesses, to French/West/Vaughan as account supervisor.
Tess Hussey,
of KellyMarCom, also joins the Raleigh-based shop as account
executive.
Juda
Engelmayer, chief communications officer for the
American Jewish Congress, to 5W Public Relations as VP in
charge of corporate and governmental issues. He is a former
VP at Rubenstein Communications and executive assistant
to New York State Comptroller Carl McCall.
Jennifer
Filice, executive director at Oldtown Salinas Assn.,
to Monterey County Conventions and Visitors Bureau as director
of marketing, a new post. She is in charge of promoting
Montereys new brand, logo, graphics and related outreach.
Annie
Neyman, who handled Kraft, Oscar Mayer and Got Milk?
campaigns at Weber Shandwick, to Zapwater Communications
as senior publicist. She will handle Bella Lounge, Kaze
Sushi, RiNo and other restaurants with Lindsay
Hays, whom Neyman worked with while at Wagstaff Worldwide.
Jill
Lewis, senior communications associate with Hillel:
Foundation for Jewish Campus Life in Washington, D.C, to
Maccabee Group in Minneapolis as senior account executive.
Promoted
Heather
Krug, to senior VP at Rogers & Cowan. She handled
PR for the return of the National Hockey League and campaigns
for Coca-Cola, General Mills (Chocolate Lucky Charms and
Berry Lucky Charms), NASCAR and Johnnie Walker Blue.
Quinn
Daly, to general manager of Blanc & Otus
San Francisco office. She replaces Greg
Spector, CEO of the Hill & Knowlton unit.
Jennifer
Teitler, to director/senior VP-consumer practice
at M Booth & Assocs. Also, Christina
Friedkin to VP, Lindsay
Burns to senior account executive, Doris
Kan and Cody
Adams to account execs; and Sarah
Stearns and Melissa
Mattiace to assistant account executives.
Jeremy
Clark, to managing director of Cohn & Wolfes
healthcare practice. He relocates next month from London
to New York. Anita
Bose has been named deputy director of the health
group.
Susan
Gilden, to account director at RBB PR, and Tracy
Belcher, to senior account executive.
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OMC
BUYING BACK ITS SHARES.
Omnicoms
stock, which has been called beleaguered by
Barrons and weak by CIBC, is being
bolstered by a massive buy-back campaign that has increased
the debt of the company.
Failure
to keep the stock above $92 could make it lose tax benefits
associated with its billions of CoCo (contingent convertible
bonds).
It
just borrowed nearly $1 billion and spent $959 million of
it in the first half buying its own stock. It has reduced
the float from 187 million shares in 2003 to 170M currently,
thus improving earnings-per-share.
OMCs
debt rose $800M to $3.37B.
Lehman
Brothers predicts OMC will buy back another 3M shares in
the second half and 7M more in 2007, reducing the float
to 160M.
Despite
this campaign, OMC has failed to stay above $90 a share
and is well below its high of $107 on Dec. 17, 1999, nearly
six-and-a-half years ago.
Neither
OMC CEO John Wren nor CFO Randall Weisenburger responded
to requests for comment on the buy-back campaign.
$92
Is Key Stock Price
CIBC
World Markets said July 25 that Prior OMC comments
indicate that if the stock was below $92, it would lose
tax benefits associated with the supplemental interest payment
needed to induce bondholders not to put the issue back to
OMC.
OMC
in 2001 floated via Merrill Lynch (at triple the normal
underwriting fees) $850M of CoCo bonds known as LYONS (Liquid
Yield Option Notes).
Instead
of paying about $60M a year in interest, OMC was able to
deduct imputed (phantom) interest of that amount
from its earnings each year, thus saving about $24M (since
its tax rate was at that time 40%; it is slightly lower
now).
The
CoCo bondholders were supposed to make out royally with
projections of OMC reaching as high as $160 in a couple
of years. Rising debt, too many insider sales, and a tight
information policy (including refusal to discuss finances
with the press) hurt the stock.
OMC
Not as Bullish
OMC
stock dipped after the analyst teleconference in late July
because managements comments were not as bullish
as in the prior quarter, said CIBC.
Some
analysts expressed concern over OMCs divestment of
Cyrex, a healthcare business with $70 million in revenues.
The
analysts said the impact of this has not been properly explained.
Analysts, accepting OMCs viewpoint, characterized
Cyrex as a non-strategic healthcare business.
A
column by New York Times reporter Gretchen Morgenson
July 30 said many companies buy stock on the open market
and later award it to their own executives either in the
form of options or as restricted stock.
The
restriction on such stock, which is given at
full value, is usually that the recipient must remain with
the company for several years.
CSV PLAYS ROLE IN ASTOR MESS.
Citigate Sard Verbinnen
is representing Anthony and Charlene Marshall in the media
uproar surrounding the care of 104-year-old philanthropist
Brooke Astor.
Stephanie Pillersdorf
and Brooke Morganstein are handling the account, according
to a CSV staffer. A call to Morganstein has not been returned.
82-year-old Marshall is
the son of the grande dame of New York Society. He has been
charged by his son, Philip, of failing to care for Astor
and her beloved dogs Boysie and Girlsie.
Philip, 53, contends that
his grandmother was a virtual prisoner in her Park Ave.
apartment, confined to a few dark rooms. There also is a
tussle over the ownership of a seven-acre compound in Maine.
Fraser Seitel, the former
Chase Manhattan PR exec who writes for the ODwyer
Co. website and magazine, is spokesperson for Annette de
la Renta, the temporary guardian of Astor and wife of fashioner
designer Oscar.
He also is repping the
interests of Henry Kissinger and David Rockefeller, supporters
of the socialite. Seitel runs crisis management firm Emerald
Partners.
PRSA BOARD NIXES PROPOSAL.
The Public Relations Society
of Americas board on Aug. 4 reaffirmed its opposition
to a Central Michigan chapter proposal to grant more power
to the Assembly.
During a leadership
call board member Dave Rickey said the current set-up
is the best way for members to be represented at the national
level. PRSA Secretary Tom Vitelli also noted that PRSA will
continue with its proxy voting system in accordance with
New York State law.
In other news, there will
be a proposal at the Salt Lake City conference to amend
PRSAs bylaws to go from two at-large board members
to seven.
PRSA President Cheryl
Procter-Rogers said there is a need to demystify board
service. She said a goal of nominating committee chair
Del Galloway is to do more outreach to members that arent
aware of the opportunity to service on the board.
CPC SEEKS SPONSORS.
The Central Park Conservancy
is looking for sponsors for its Halloween Ball that is slated
for Oct. 25.
That upcoming Enchanted
Forest event is the key fund-raiser for the group
and is expected to attract more than 600 people from New
Yorks social elite.
The average household income of those at last years
ball topped the $500K mark. Most of those party-goers lived
in the swank zip codes surrounding the park. Actress Sigourney
Weaver called last years ball the best party
in New York.
A presenting sponsor
($150K) gets name/logo printed on the 5,000 invitations,
1,000 programs, signage during the event, PR/photo opportunities
before and after plus next-day use of the tent. That sponsorship
level also gets seating for 20.
There are other sponsor
opportunities from $75K to $15K. Jill Pall has details at
212/310-6691 or [email protected].
The Conservancy has raised
more than $350M for the park since `80.
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2006, Page 8
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PR OPINION/ITEMS
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A
full debate on the Israel/Lebanon war has accompanied the
action on the ground.
This
is the highest function of PR open debate with principals
in the debate subjected to questioning by appropriate experts.
We
were able to follow five hours of the action and debate
on TV while flying to San Francisco Aug. 1 to attend the
annual conference of the Assn. for Education in Journalism
and Mass Communication.
Our
new Delta aircraft gave each passenger access to a variety
of live TV stations as well as movies.
This
meeting brings together more than 1,400 professors of journalism,
PR, communications, marketing, advertising and related subjects.
More
than 100 scholarly papers were placed on tables for sale
at 50 cents each and nearly 100 topics were discussed at
panels and general sessions.
The
Institute for PR celebrated its 50th anniversary at a reception
during the conference.
Among
those present at the conference were Frank
Ovaitt, IPR
president; Donald
Wright, newly
named senior PR scholar at Boston Univ. and an IPR trustee;
Don Stacks,
Univ. of Miami, IPR trustee and author of Primer on PR Research;
Elizabeth Toth,
Univ. of Maryland; Maria
Russell, Syracuse
Univ. and former national treasurer of PRSA; Dean
Kruckeberg,
Univ. of Northern Iowa, a leader in PRSA educational initiatives,
and Kirk Hallahan,
Colorado State Univ.
It
did not take long to absorb the messages
being put forward by the two major combatants in the Mid-East
war.
Israel will continue fighting
until it gets back its two captured soldiers and the threat
of rockets from the Hezbollah has been removed. This was
stated repeatedly by Israels highest leaders and past
leaders.
The Lebanese and Syrian
governments, as well as the Hezbollah, also put their leaders
on to say they want a prisoner exchange and have no intention
of backing down. They said that on five previous occasions
Israel swapped prisoners with either Palestinians or Lebanon
and that part of Israels motive is diminishing Lebanon
as an economic competitor. Both sides were subjected to
questioning by reporters for CNN, Fox, MSNBC, etc.
While
PR can win attention for a product, cause or event,
it also has the follow-up duty of undergoing cross-examination.
The National Communication Assn. (natcom.org)
is devoted to encouraging and monitoring public debate by
various participants...we
were disappointed that the Aug. 4 leadership teleconference
of PRSA barely touched on the most sweeping governance
change ever proposed to the Society the replacement
of the board by the Assembly as the chief policy-maker of
PRSA. The board would no longer be able to make substantive
decisions (such as the move of h.q. to downtown New York
or the cancellation of the printed members directory)
without the approval of the Assembly. PRSA president Cheryl
Procter-Rogers said the bylaw sought by the Central Michigan
chapter violated the New York State charter of PRSA and
that governance had already been studied by a committee
last year. Director Dave Rickey then said that after looking
at the governance of other groups, the committee decided
that PRSA is being run on democratic principles
and the current system is the best way for members
to be represented at the national level. No objections
were raised. In fact, there were only two minor questions
at the a.m. teleconference. Public debate is not one of
the strong suits of the PRSA leadership.
A
major story last week was the departure of Procter-Rogers
from her job at the HBO unit of Time-Warner after
nine years. This is the third major company to leave the
PRSA board this year, Gary McCormick of Scripps and Ron
Owens of Kaiser Permanente having previously departed. Ten
of the remaining directors are solo PR pros or in small
PR firms...Procter-Rogers
put out a statement praising HBO and saying it had
helped her in her career. Parent TW has been cutting staff,
including 5,000 at its AOL unit, but HBO said there have
been no layoffs at HBO...another
head of a major PR group, Roger Bolton, president
of the Arthur W. Page Society, lost his job at Aetna earlier
this year. Companies seem to be interested in their bottom
lines and not whether a job shift will impact a major PR
group and, inferentially, the PR industry itself. The question
raised is, if PR is so valuable, why arent experienced
PR employees such as Procter-Rogers and Bolton, who are
also leaders in the PR industry, being retained?...PRSAs
tutorial teleconferences are a little weak,
but the in-person workshops are doing well,
the teleconference was told. Job listings are stronger
than ever and seem to be taking off, it was also said...PRSA
wont say when it will release its 990 IRS return for
2005. Deadlines are either Aug. 15 or Nov. 15 (which
would be after the Assembly Nov. 11)...since
the number of new PRSA APRs is well below the rate
produced with the new test (now three years old), the current
emphasis is on marketing the test, the teleconference was
told.
The
Internet and blogs are creating a new kind of culture
in which youths are no longer passive but are becoming engaged
and creative, Stanford University law professor
and keynoter Lawrence Lessig told the opening AEJMC session.
He worries that copyright law could stifle creativity and
asked for revisions that allow research and satire using
graphics and video. He noted that Fox refused a request
to use footage of its newscasts for another TV outlet that
wanted to show bias in Foxs reporting.
As an example of this,
Stanford University professor Joel Beinin sued frontpagemag.com
editor David Horowitz after Horowitz used the picture of
Beinin on the cover of a booklet titled, Campus Support
for Terrorism.
Rather than suing for
libel, Beinin sued Horowitz for unauthorized use of his
picture. Story was in the Aug. 4 San Francisco Chronicle.
--Jack
O'Dwyer
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