According to a report, Interpublic had been trying to exclude activist shareholder Charles Miller's "Maximum Value Resolution" from its annual general meeting. The proposal calls on the board of Interpublic to arrange for its "prompt sale" to the highest bidder.
However, Interpublic's request has been turned down by the Securities & Exchange Commission because the regulator did not believe the arguments provided by Interpublic to do so were strong enough. The SEC has written to Interpublic's lawyers to inform the company of the decision.
The news follows last week's revelation by Interpublic that it had uncovered errors resulting from "instances of falsified books and records, violations of laws, regulations and company policies, misappropriation of assets, and inappropriate customer charges and dealings with vendors".
It said that it was in the process of getting rid of the employees who were responsible for the fraud, which had mostly taken place outside the US.
Along with the fiasco over its financial results, which means it has not yet filed earnings statements for 2004 nor the first half of this year, Interpublic has faced a string of account losses. These include: Bank of America, worth $600m; DIY retailer Lowe's, worth $315m; and most drastically, the $3.2bn General Motors media account.
Interpublic is due to file these statements on September 30. Shares in the company closed down by 22 cents yesterday at $11.05 -- a fall of 2%. Interpublic is listed on the New York Stock Exchange.
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