Following Monday’s news that further accounting shocks could be in store when Interpublic Group reports its Q3 results Wednesday [WAMN: 11-Nov-02] , the agency holding group’s shares were in turmoil on the New York Stock Exchange.
The stock at one point lost nearly ten per cent of its value, opening Monday at $13.36 (€13.22; £8.41) and plunging to $12.05 before staging a rally to close just 4.12% down at $12.81.
Accounting irregularities centering around McCann-Erickson Worldwide’s European operations were first reported in August, compelling Interpublic to restate five years of earnings and take a $68.5 million pretax charge. In October IPG admitted that subsequent investigation had necessitated upward adjustment of the charge to a figure “not expected to exceed $120 million”.
Monday’s New York Times reported that this figure is likely to get worse. The speculation follows more recent news [WAMN: 24-Oct-02] that McCann chief financial officer and vice chairman Salvatore LaGreca (49) is to take premature retirement.
Data sourced from: MediaGuardian.co.uk; additional content by WARC staff