Interpublic loses chief financial officer in crunch week

LONDON - The Interpublic Group has lost its chief financial officer Robert Thompson after less than year, as the advertising holding company faces meetings with creditors this week.

Thompson is the second chief financial officer to depart in two years. Last June, Chris Coughlin departed after less than a year in the CFO's role.

Coughlin took over from Sean Orr, who stepped down in November 2003 amid shareholder lawsuits and accusations of inaccurate book-keeping. When Thompson took over, he was already at Interpublic as senior vice-president of finance.

Interpublic said it has already reached a tentative agreement with an external candidate to serve as its new CFO, although the worrying turnover in the top financial role at the troubled ad group is likely to further worry investors.

Michael Roth, Interpublic's chairman and CEO, said: "Bob and I have independently come to the conclusion that the next steps in our company's progress will require new financial leadership.

"Bob came to me late last week to indicate his desire to leave. Separately, the company had begun the process of seeking new financial leadership and we have reached tentative agreement with an external candidate who we look forward to having join us in early August."

Interpublic said that for reasons "having to do with that individual's current professional situation", it is unable to formally announce the appointment at this time, but expects to do so during the second half of July.

Yesterday, it was reported that Interpublic was seeking a reprieve from investors as the industry waits to see if the world's third-largest advertising holding company will further delay its 2004 results.

The results were due in March when Interpublic said it was unable to file its annual results for 2004 on time, and that it had uncovered $145m in overstated revenues, relating to acquisitions made between 1996 and 2001.

Interpublic confirmed today that it would extend its deadline to September 30. Interpublic also said that it had secured from its bank syndicate waivers and amendments to its 364-day and three-year credit facilities.

"I have always been clear that the control environment is our company's most pressing priority. We are making progress in addressing this key issue. We are confident that we will resolve the filing delay and be current with all our financial reporting by September 30," Roth said.

"We appreciate the continued support from our bank syndicate. We also remain focused on serving our clients. The internal financial control situation has not had an effect on our ability to create and deliver world-class marketing programmes that help clients build their brands and their business."

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