IPG shares collapse as fresh accounting anomalies revealed

John Dooner, the Interpublic chief executive, and his chief financial officer, Sean Orr, face criticism from investors after a collapse in the company's share price and a downward revision of its earnings.

Since Dooner took the helm of IPG less than two years ago, the holding company's share price has fallen by more than 70 per cent. It stands at $12.14.

The figure suffered a sharp drop last week following a report that McCann-Erickson Europe's accounting anomaly amounted to $120 million, not $68.5 million. The share price also sparked speculation the group could be a takeover target, or that it could face a buyout and breakup by a private equity company.

IPG said it expects to cut its full-year earnings because of problems with its Octagon Motor sports division, the economy in Latin America and Japan and falls in certain marketing services, on top of accountancy discrepancies.

- Stuart Elliott in America, p19.